1.8 million Self-Assessments filed late in 2020 says HMRC

Last year, HMRC reported that almost 1.8 million Self-Assessments were filed late, equating to 15 per cent of the total expected to be filed.

Going into 2022, small business owners and self-employed entrepreneurs are focusing on their post-pandemic recovery, and may find their finances are seriously impacted if they fail to file returns on time.

Small business, sole trader, freelance and entrepreneur accounting experts at The Accountancy Partnership are urging self-employed people to turn their thoughts to tax returns well before the January 31st deadline to avoid potentially business-damaging penalties. Late filings incur a 5 per cent penalty.

Lee Murphy, managing director at The Accountancy Partnership, said: “If you are self-employed, it is important to start thinking about filing your tax return now. It will ensure you have enough time to work through the form, and can seek professional help if you need it before accountants get too busy in the run-up to the deadline.

“To complete your return, you will need your Government Gateway login and Unique Tax Payer Reference to access the forms. You will also need all your relevant accounts, receipts, bank statements and paperwork. Gather these together before you start filling in your tax return to simplify the process.

“If all your important documents are kept in a paper-based system and are generally difficult to sift through, it might but worth adopting a digital bookkeeping system to save time and make files more accessible.”

In addition to filing early, Lee emphasised the importance of claiming back business expenses and the tax benefits that come with it.