If you are self-employed or earn additional income which is not covered by PAYE, you will need to fill in a self-assessment tax return.
To do this, you will first need to register with HMRC. It is important to be aware of the deadlines for submitting your tax returns because there are hefty penalties if you fail to submit a return – even if you have nothing to pay – or for the late payment of tax.
Currently, you can opt to send your tax returns using either software or paper forms. However, you may have heard about an initiative called ‘Making Tax Digital’ which proposes to put in place digital reporting, meaning that paper forms may soon become obsolete.
As yet, the exact details of Making Tax Digital (MTD) are on hold as a result of the snap General Election but it is expected that MTD will form part of the new Finance Bill in the next parliament.
