Self-assessment tax return: self-employed workers have just weeks to submit form to HMRC or risk £100 fine

Self-employed workers have just under a month left to file their self-assessment tax return for the 2012/2022 tax year or risk landing a £100 fine.

The due date for the online tax return is 31 January 2023. Self-assessment tax returns are for anyone who does not have their tax automatically deducted from their wages or those who have earned extra money which has not been taxed.

Even those who need to file returns but have no tax to pay must submit their tax return in time or they could still be fined £100. Fines are handed out to those who file incorrect information and there is even a prison risk for the most egregious instances.

If you miss the deadline by three months, HMRC can add an extra £10 a day penalty for the next 90 days - which is repeated after 12 months. Interest on the tax owed plus any fines will also have to be paid.

Myrtle Lloyd, HMRC director general for customer services, said: “We are grateful to those customers who have already filed their tax returns. For anyone who is yet to make a start, help is available on Gov.uk. Just search ‘Self Assessment’ to find out more.”

How to submit a self-assessment tax return

The deadline for paper self-assessment tax returns was 31 October 2022, meaning submitting a form online is the only option left to avoid being fined.

If this is your first time filing for a tax return, or if you did not send one in the last tax year you need to register for self-assessment on Gov.uk.

HMRC will send a unique taxpayer reference (UTR) which is needed to log in. It can take up to 10 days to receive your UTR so ensure you apply online as soon as possible.

Then you can go through Gov.uk to file your self assessment tax return online. You will need to prove your identity using Government Gateway. You will be able to register for Government Gateway if you have not used it before.

HMRC will then calculate what tax you owe based on what you report. How much tax you pay will depend on the Income Tax band you are in.

You must send a tax return if, in the last tax year from 6 April to 5 April, any of the following applied:

• you were self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on)
• you were a partner in a business partnership
• you earned £100,000 or more

You may also need to send a tax return if you have any untaxed income, such as:

• some COVID-19 grant or support payments
• money from renting out a property
• tips and commission
• income from savings, investments and dividends
• foreign income

You can check online if you need to send a tax return if you are unsure.