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Freelancers WARNED About Tax Returns

freelancesupermarket.com newsroom

RSS 16 January 2018
As a self employed freelancer one of your duties is to send in a tax return by the 31st of January each year. “Do it now,” WARN the experts.

The reason? Because if you don't send off your tax return online by this date, then you expect HMRC to instantly hit you with a £100 fine. They don't care what your excuse is, all they know is that you didn't play by their rules.

Not only that, but if you are a freelance professional who has only just recently become one and this is the first time you are doing an online tax return, then you should definitely NOT leave it until the last minute.

That is because first timers may need to get an activation code in order to do their tax return on the HMRC website, and it could take 10 days to receive it.

In other words, if you wait until the 30th of January to do your tax return thinking that you have 24 hours to get it done, then you could be completely wrong. "£100 please," is what HMRC will say.

What about paper tax returns...are HMRC still accepting those? Not a chance mate. It was the 31st October when tax returns through the post stopped being accepted, which means right now your only option is to get it done online.

So forget about buying a stamp or getting to the post office before it closes, the only thing you should be focusing on right now is the HMRC website and your online tax return.

Some freelancers no doubt laugh at the £100 charge for being late. "I make 6 figures a year, I don't care about a fine" some will say.

That is very true, perhaps £100 is not enough of a reason for some freelance professionals to get going with their tax return.

If you are planning this "relaxed" course of action then just be aware that if you still have not sent off your tax return within 3 months, then, HMRC can and will charge you £10 a day for a maximum of 90 days.

Not only that, but they also have the power to slap even more fines onto your account, not to mention the fact it doesn't exactly put you in their good books.

In my opinion you should just set aside the time right now to visit the HMRC website and get your online tax return sorted straight away.

Make sure you have all of your paperwork at hand, which includes receipts and things like that. You want to make sure you are accurate with the numbers.

Perhaps you just don't have the time or patience to do all of this? If so, then you should seek out the services of an accountant who does the books and tax returns for freelance professionals.

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