Self Assessment in January not April?

sc120826

Not sure if this was the best board to post on so feel free to point me in a better direction. I started working self employed Feb 23. It was a complete change in career and I've not made enough to pay tax on yet however I was wanting to file a self assessment and get an SA302 anyway. 

I'm a little confused though, I know the tax year runs April to April but does filing a return by the end of Jan basically mean tax is due on earnings from 31st Jan - 31st Jan and needs to be paid by the new tax year or is the tax due on earnings April-April?

Dazed_and_C0nfused

sc120826 said:

Not sure if this was the best board to post on so feel free to point me in a better direction. I started working self employed Feb 23. It was a complete change in career and I've not made enough to pay tax on yet however I was wanting to file a self assessment and get an SA302 anyway. 

I'm a little confused though, I know the tax year runs April to April but does filing a return by the end of Jan basically mean tax is due on earnings from 31st Jan - 31st Jan and needs to be paid by the new tax year or is the tax due on earnings April-April?

A tax return is for a specific tax year.

The tax year runs from 6 April of one year to 5 April of the following year.

If you have started self employment and have turnover in excess of £1,000 then a return will be required, it's not optional.

Have you registered and been sent a return or notice to file a return for 2022-23?

[Deleted User]

sc120826 said:

Not sure if this was the best board to post on so feel free to point me in a better direction. I started working self employed Feb 23. It was a complete change in career and I've not made enough to pay tax on yet however I was wanting to file a self assessment and get an SA302 anyway. 

I'm a little confused though, I know the tax year runs April to April but does filing a return by the end of Jan basically mean tax is due on earnings from 31st Jan - 31st Jan and needs to be paid by the new tax year or is the tax due on earnings April-April?

Presumably you were PAYE prior to self-employment?

As previously stated a return for 2022/23 should include all earnings for the tax year 6th April 2022 to 5th April 2023 and must be filed by the end of this month. This includes PAYE income and tax deducted thereon. 

Your self-employment income for 2022/23 will be profits made in the period from commencement to 5th April 2023. Any tax due is also payable by 31st January 2024.

Hopefully you have registered with HMRC and received a UTR as time is now tight for filing. 

sc120826

So I was employed up until Feb 2023 (PAYE) and then from Feb 2023-April 2023 I only made £736 from self employment and nothing else. As this is less than £1000 am I exempt from filing a return this year for 22-23 and then next January I need to file a return for my income April 23 - April 24 as this will be over £1000.

sc120826

So I was employed up until Feb 2023 (PAYE) and then from Feb 2023-April 2023 I only made £736 from self employment and nothing else. As this is less than £1000 am I exempt from filing a return this year for 22-23 and then next January I need to file a return for my income April 23 - April 24 as this will be over £1000.

[Deleted User]

You should file anyway. If you claimed the trading allowance of £736 your self-employed income would be NIL. If you ceased employment at the end of January and didn’t claim a tax refund you would not have used your personal allowance for February and March. A basic rate taxpayer on a standard code of 1257L would expect a refund of £419, £209 if ceasing in February. 

sc120826

[Deleted User] said:

You should file anyway. If you claimed the trading allowance of £736 your self-employed income would be NIL. If you ceased employment at the end of January and didn’t claim a tax refund you would not have used your personal allowance for February and March. A basic rate taxpayer on a standard code of 1257L would expect a refund of £419, £209 if ceasing in February. 

I did receive a tax refund from HMRC, will this affect things. I'm a bit lost on what to do 😅

Dazed_and_C0nfused

sc120826 said:

purdyoaten2 said:

You should file anyway. If you claimed the trading allowance of £736 your self-employed income would be NIL. If you ceased employment at the end of January and didn’t claim a tax refund you would not have used your personal allowance for February and March. A basic rate taxpayer on a standard code of 1257L would expect a refund of £419, £209 if ceasing in February. 

I did receive a tax refund from HMRC, will this affect things. I'm a bit lost on what to do 😅

You have two options really.

1.  Try and persuade HMRC to withdraw the return (assuming you have been issue with a notice to file one).

2.  File the return, ensuring details of the tax refund already received are declared in the appropriate box (there is one for this very situation).

If you haven't registered yet then register and follow step 2 above.   For 2022-23 you have 3 months from when HMRC issue the notice to file a return to file it.

NB.  Step 1 might take quite some time now, step 2 will likely be quick in comparison.

[Deleted User]

sc120826 said:

purdyoaten2 said:

You should file anyway. If you claimed the trading allowance of £736 your self-employed income would be NIL. If you ceased employment at the end of January and didn’t claim a tax refund you would not have used your personal allowance for February and March. A basic rate taxpayer on a standard code of 1257L would expect a refund of £419, £209 if ceasing in February. 

I did receive a tax refund from HMRC, will this affect things. I'm a bit lost on what to do 😅

 Theoretically (🤔) you did not make any money prior to 5th April 2023. HMRC would tell you that, as you commenced before 5th April 2023 you should have registered by 5th October 2023. 

Personally, and not strictly correctly,  I would register asap with a commencement date of 6th April 2023 and apply for a UTR. Your first return would be for 2023/24 tax year which must be filed by 31st January 2025. 

If you really have no idea I would recommend engaging an accountant, at least for the first year. The fee, which is tax deductible, may save you a lot of grief on the long run. I would be telling them that the business was a sideline/hobby prior to April 2023 and you didn’t formally trade until 6th April. 

The tax refund is not relevant- 2022/23, as far as HMRC is concerned - is closed.