It’s almost that time of year again; Christmas parties, the X Factor and Strictly Come Dancing on the TV, and those television and radio adverts featuring Moira Stuart reminding us of the deadlines for submitting our tax returns.

If you have already been issued with a notice to complete a 2011/12 tax return you are probably already aware that you have until 31 October 2012 to submit a paper copy to HM Revenue & Customs (HMRC), and until the 31 January 2013 to file online.  But what do you do if you haven’t received a notice to complete a tax return, and you suspect that you should be preparing tax returns?

HMRC only issue tax returns to those already within the Self-Assessment system. This puts the onus on the individual to notify HMRC of any changes in their circumstances that require them to complete a tax return, and to register for Self-Assessment.

The deadline for registering for Self-Assessment is 5 October.  With this deadline less than a week away, it’s more important than ever that you check whether or not you should be within the Self-Assessment regime.

How do you determine whether or not you should complete a 2011/12 tax return?

HMRC have issued guidance on the reasons that an individual would be required to complete a tax return, and a detailed list can be obtained from the HMRC website.  However, some of the more common reasons include the following:

• You were self-employed in the year (including members of partnerships)
• You receive £10,000 or more from savings and investments
• You receive £2,500 or more from untaxed savings and investments
• You receive either £10,000 or more from property before the deduction of any expenses, or at least £2,500 after the deduction of expenses
• You receive foreign income
• Your annual income exceeds £100,000
• You have a capital gains tax liability in the year

If you satisfy any of these criteria in 2011/12 and have not already been issued with a tax return, it’s more than likely that you will be required to register for Self-Assessment.

How do you register for Self-Assessment?

Once you have determined that you need to complete a 2011/12 tax return, the next step is to register for Self-Assessment.  This can be done in one of two ways:

The first method is to complete either form CWF1 (self-employed individuals) or SA1 (all other cases).  These forms can be downloaded from HMRC’s website by following the below links:

SA1 – http://www.hmrc.gov.uk/sa/forms/sa1.pdf

CWF1 – http://www.hmrc.gov.uk/forms/cwf1.pdf

Alternatively, you can contact the Self-Assessment Helpline on 0845 900 0444.  You will be asked to provide your National Insurance number and to explain why you believe you should be issued with a tax return.

If you have previously been within the Self-Assessment regime, you will have previously been assigned a Unique Taxpayer Reference (UTR).  This is a 10-digit reference number and can be found on correspondence received from HMRC.  It’s not necessary to have a note of your UTR to re-register for Self-Assessment, but locating this information may speed up the registration process and avoid the duplication of Self-Assessment records.

The normal deadline for the online submission of a 2011/12 tax return and the payment of any tax owing is the 31 January 2013, although a paper tax return can be submitted at any point up to the 31 October 2012.  However, where you have been issued with a tax return after 31 October 2012, you have three months from the date you received the notification from HMRC to submit your tax return (either on paper or online) without incurring late filing penalties.

What happens if you miss the 5 October deadline?

With effect from 2011/12, a new penalty regime is in place if you fail to register on time.

This penalty regime is based on late returns and potential lost revenue’ i.e. the amount of tax outstanding at the normal due date (31 January 2013). Therefore, if you miss the 5 October 2012 registration deadline, but still manage to submit a 2011/12 tax return and pay your tax liability by 31 January 2013, HMRC will not impose a penalty for late registration.

If you have any queries regarding any of the above, or require assistance with the registration process, please contact us.