Like a lot of parents, I’m super busy and don’t have time to trawl the Internet researching a topic, let alone understanding it in my sleep deprived brain fug. So I’ve done the work for you, condensing topics down to the essentials you need to know plus more detail if you need it.
This post has been updated for the 19-20 tax year.
Submitting your Self Assessment (part one)
What You Need to Know
- Tax year runs from 6th April 2019 to 5th April 2020
- Your self-assessment tax return must be completed online by the 31st Jan 2021
- If your turnover from self-employment is less than £1,000, you must decide whether to declare your income and expenses
- On 31st Jan, you will need to pay any tax that is owed for 19-20 as well as a contribution towards 20-21
In More Detail
Once you have registered yourself as self-employed, you will be due to complete your self-assessment return for HMRC by the 31st January following the end of the last tax year. Although it does take a bit of time to complete the form online, if you have prepared all of the figures and information you need in advance, it makes it a whole lot easier.
Once you log on to your account through the Government Gateway and start completing the form, you will be shown what information HMRC holds for you. This will include employment details if you have been part of a PAYE scheme. The next page asks you to confirm details such as your address and DOB.
The next page is very important as your answers will filter the rest of the return so that you only fill out what you need to. If you trade under more than name for self-employment you can complete each ‘business’ separately.
There is one key question that you need to think about and make sure you answer correctly Was your turnover £1,000 or more in total from all self-employments? For example if you had three self-employment businesses and they made £500 each, you would need to complete this section because the total of the three together is more than £1,000.
If your turnover (sales income) was less than £1,000 in the tax year, you do not have to complete the self-employment section of the return. However there are some reasons why it would benefit you to complete this section anyway:
- if you have made a loss in the year (expenses total more than income) and you want to claim loss relief, or carry the loss forward into a future year
- you want to build your National Insurance contributions by voluntarily paying the Class 2 amounts (this goes towards your State Pension)
- if you think your turnover will be above £1,000 in the next tax year
Most importantly, completing this section means that you have an official record of your self-employment, which will act as proof for eligibility for 30 hours free childcare, Tax Free Childcare or Maternity Allowance.
If you do complete the Self-Employment section you will have to pay Class 4 NI contributions on your profit figure.
If you answer No to the question Was your turnover £1,000 or more in total from all self-employments? then you will not be given the self-employment section to complete on your return.
Check out part two of my guide when I will talk you through which figures you will need to collect and enter onto your return.
You can login and file your return using this link on the HMRC website.
Photo by Katie Harp on Unsplash