5 top tips for record-keeping

In this guide:

  • What should my record-keeping system include?

    The legal requirements for a record-keeping system.

    There are six basic sets of financial records that should help you run a tight business:

    How long you need to keep your records

    The law states that all business owners must maintain financial records and retain them as a general rule for a minimum of six years. However, if you are:

    • self-employed, you must keep records about your business income and costs for at least five years after 31 January submission deadline for Self Assessment of the relevant tax year
    • an employer, you need to keep Pay As You Earn (PAYE) records for three years (in addition to your current year)
    • a contractor in the Construction Industry Scheme (CIS), you need to keep your CIS records for three years (in addition to your current year)
    • keeping records to complete a personal (non-business) tax return, you only need to keep them for 22 months from the end of the tax year to which they relate

    See how long to keep your records.

    What should my record-keeping include?

    Although the level of record keeping required may vary from business to business, it should include:

    • all sales and income
    • all business expenses
    • VAT records if you're registered for VAT
    • PAYE records about your personal income
    • any rant payments

    Keep proof

    It is important that you keep accurate, relevant financial records and update them on a regular basis. You may incur a penalty if you're unable to back up the statements made in your income tax or VAT (if it applies to your business) returns.

    To help you prove and keep track of income and expenditure you should keep:

    • all receipts for goods and stock
    • bank statements and chequebook stubs
    • sales invoices, till rolls and bank slips

    There are no rules about the format you must use to record your figures - those kept on paper are just as valid as those stored in digital format. However, you must keep some VAT records digitally, unless you're exempt from following Making Tax Digital for VAT rules. Find out more about keeping VAT records.

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  • Cash sales and purchases/expenses books

    Recording money that comes in and goes out of your business - your cashflow.

    The cash book is the central record of all the money that comes into and goes out of your business - often referred to as cashflow.

    What records do I need to keep for the cash book?

    To complete your cash book, you'll need to collect and hold on to:

    • cheque book stubs
    • cancelled cheques
    • bank paying-in books
    • bank statements
    • copies of your own invoices
    • receipts and delivery notes
    • your suppliers' invoices
    • receipts for all cash purchases, till rolls, etc
    • remittance advice slips from customers
    • copies of payments made or received using online banking systems
    • credit or debit card statements
    • credit and debit card transaction slips/vouchers

    A separate record for sales and purchases (receipts and payments) is sensible. Once you have a turnover of more than £90,000, the VAT registration threshold, it will help you calculate your VAT liability - the difference between the VAT you reclaim and your total VAT on sales.

    Cash book templates

    See the example spreadsheets below:

    Cash book for sales

    Date Customer Amount
    received    		 Cash sales Cheque Credit
    /debit card    		 Bank pay-in amounts
                 

    Download the cash book spreadsheet for sales (XLS, 19K).

    Cash book for purchases and expenses

    Date Supplier Amount paid Paid cash Paid cheque Paid credit/debit card
               

    Download the cash book spreadsheet for purchases and expenses (XLS, 19K).

    Recording the type of expense - business-related or personal - will help when filling in your annual Self Assessment tax return and also your VAT return (if registered for VAT). You will need to be able to distinguish between 'allowable' expenses and 'non-allowable' expenses.

    Check the individual entries in your cash book with the bank statement to pick up items paid directly into your bank account. If you pay by cheque, you should also check that these have been properly credited by your suppliers.

    Cash book summary

    The cash book summary reconciles the totals from the cash book sales and cash book purchases and expenses. It helps you check what your opening and closing balances are and helps you monitor how your business is performing.

    Cash book summary (reconciliation)

    Date Payment/balance detail Amount
      Opening cash balance (A)  
      Cash receipts (B)  
      Cash banked (C)  
      Cash payments (D)  
      Closing cash balance (E)  
      Opening cheque account balance (F)  
      Total value of pay-ins for period (G)  
      Total value of payments for period (H)  
      Closing cheque account balance (I)  
         

    Download our cash book summary spreadsheet (XLS, 19K).

    Closing cash balance

    To reach the closing cash balance (E), the calculation is (A + B) - (C + D) = E.

    Closing cheque account balance

    To reach the closing cheque account balance (I), the calculation is (F + G) - H = I.

    The closing cash balance (E) should always equal the cash in hand. If it does not the discrepancy should be investigated. It may be because of an unentered receipt or payment.

    The closing cheque account balance (I) should always equal the balance on the bank statement at the close of business on the same day as the cheque account is made up to, after allowing for unpresented cheques or bankings.

    Small, simply structured businesses may find the cash book above sufficient. However, keeping a sales ledger and a purchase ledger as shown elsewhere in this guide will enable you to record sales, purchases on credit, and keep track of amounts owed to you from sales and by you for purchases. This will make it easier for cashflow management.

    Digital records and accounting software

    Many businesses choose to use accounting software to help them manage accounts more efficiently. It can make the process quicker and more straightforward but for some taxes, such as VAT, you must keep some of your records digitally following Making Tax Digital for VAT rules.. Using accounting software can also make the process of e-filing (submitting records electronically) very simple. See computerising financial records.

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    Cash book spreadsheet for sales (XLS, 19K)
    Cash book spreadsheet for purchases and expenses (XLS, 19K)
    Cash book summary spreadsheet (XLS, 19K)
    Also on this site
    Templates for record-keeping
    Cashflow management
    Content category
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    Source URL

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  • Sales ledger

    The basics of using a sales ledger to monitor the money coming into your business.

    A sales ledger normally records:

    • the sales your business has made
    • the amount of money received for your goods or services
    • money owed (debtors) at the end of each month

    It's a useful business-planning tool, enabling you to monitor and chase slow payers and see which customers are most profitable. Also, if you are VAT registered, it can help you with calculating your VAT liability and submitting your VAT Return.

    Sales ledger

    Date Invoice
    number    		 Customer Net VAT Gross Date
    paid    		 Payment
    type
                   

    Download the sales ledger spreadsheet (XLS, 19K).

    How do I use my sales ledger?

    Every time you invoice a customer, record it in the sales ledger - do this regularly, at least once a week. Each week or month, you can add up the total amount of sales invoiced by you, also called turnover (an important business statistic). By recording the amounts paid by customers in the sales ledger you will also be able to identify the money owed to your business. Any customers that have exceeded your payment terms can then be chased.

    If you choose to use accounting software, the process of identifying overdue payments will be quicker and easy. See computerising financial records.

    If you are not VAT registered then you have no need of the 'Net' and 'VAT' columns.

    Keeping records of invoices

    To support your sales ledger you need to keep copies of your invoices. These must be kept on file or in digital format for six years. It will assist in tracing sales invoices if you give each sales invoice a number and record this number against an entry in the ledger.

    If any of your customers has both cash and invoiced sales, the sales ledger can be used to record both. In these cases, the cash sales are normally recorded in the sales ledger on a daily basis, and should be supported by till receipts or any other record issued to the customer. The entry in the sales ledger can just say 'cash sales' in the customer column.

    Actions
    Sales ledger spreadsheet (XLS, 19K)
    Also on this site
    Templates for record-keeping
    Record-keeping and tax
    VAT
    Content category
    Taxes

    Source URL

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  • Purchase ledger

    What to record in a purchase ledger to keep track of how much money you owe.

    A purchase ledger records all purchases made by your business.

    It helps you to monitor:

    • your business' outgoings
    • how much money you owe (creditors) at any one time

    In addition, it gives you a record of your most regular suppliers and how much you have spent with each.

    If you are VAT registered it can also help you with calculating your VAT liability and submitting your VAT Return.

    Purchase ledger

    Net value VAT Gross value Date paid Payment type (cash, cheque, credit/debit card)
             

    Download the purchase ledger spreadsheet (XLS, 20K).

    To support your purchase ledger for reconciliation purposes you may wish to make reference to bank account or credit card statements.

    How do I use my purchase ledger?

    By recording in the purchase ledger payments for purchases you have made, you will be able to identify the amount that is currently unpaid. Each time a payment is made, note it in the "Date paid" column. You can add up the totals on a regular basis to see how much you owe at any one time.

    It is a good idea to number each bill when you receive it and record this number against an entry in the ledger. It is also advisable to file the bills in numerical order. That way, you will be able to easily find the bill if a query arises later.

    Unless your business is VAT-registered, then you will not need to use the 'Net' and 'VAT' columns.

    Actions
    Purchase ledger spreadsheet (XLS, 20K)
    Also on this site
    Templates for record-keeping
    Record-keeping and tax
    VAT
    Content category
    Taxes

    Source URL

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  • Wages book

    The value of maintaining a wages book and how to manage it if you employ staff.

    If you employ staff, you will need to keep a record of how much you pay each of them and the deductions made from their wages.

    For each employee you must keep a record of:

    • their gross pay (the mains things that count are wages, salary, overtime payments, statutory payments)
    • any tax deducted or refunded
    • any National Insurance contributions (NICs) deducted or refunded
    • any Student Loan deductions

    Why do I need to keep wages records?

    • You will have a single, detailed record of one of the most significant costs for most small businesses.
    • You will be able to easily answer any staff questions you may receive when they come to do their own Self Assessment income tax returns.
    • You will be able to prove that you pay the national minimum wage and equal pay for work of equal value should you need to.

    Payroll software

    For PAYE you must report employee information online in real time. Payroll software will help you with the key tasks for completing wages records See running payroll and find payroll software.

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      Find payroll software
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      PAYE and payroll for employers
      Pay: employer obligations
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    • Digital financial records

      Reasons for keeping computer-based financial records and how to choose bookkeeping and accounting software packages.

      A digitised record-keeping system can save you a great deal of time. It will allow you to add, delete, amend and share your data easily and will recalculate your running totals for you.

      Computerising your accounts can also have wider business benefits. It will allow you to file government returns, such as VAT and Self Assessment tax returns, online as well as potentially enhancing your business' ability to communicate online with customers for applications such as e-invoicing.

      You may also need to keep digital financial records as a legal requirement, for example, if your business is VAT-registered you must keep digital records as part of Making Tax Digital for VAT. See keeping VAT records.

      Choosing a software package

      You can either use your computer's standard spreadsheet package or you can buy an accounting software package. Accounting sotware packages have been developed to meet the needs of most small businesses. Most software will require payment but there may be some free versions available. Find commercial software suppliers of record-keeping applications.

      More advanced accounting packages are sold in 'modules', with each one handling an aspect of financial management. Most businesses buy at least three modules (sales, purchase and nominal ledger).

      Remember if you are using an accountant, your software packages should be compatible.

      Also on this site
      Accounting software
      Content category
      Taxes

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    • Record-keeping best practice

      Good record keeping habits and the "four S" approach: system, separate, security, storage.

      To keep good control of your financial record-keeping, you should work towards making the following regular updates to your business records.

      Hints and tips for record-keeping

      What you need to do

      When

      Record sales in the sales ledger

      		 Daily or at least weekly

      Record payments received in the sales ledger

      		 Daily or at least weekly

      Record purchases in the purchase ledger

      		 Daily or at least weekly

      Record payments made in the purchase ledger

      		 Daily or at least weekly

      Reconcile the sales and purchase ledgers

      		 Every month

      Chase all outstanding payments

      		 As soon as they are overdue

      Check your cash book against your bank statements and your sales and purchase ledgers against your cash book

      		 Every time you receive a bank statement


      4 S's of record-keeping

      System

      Spend time setting up a system that is consistent and reliable. Allocate a regular time every week/month to deal with your financial administration, or make it a key task for a trusted employee. File your records logically - put receipts in date-marked envelopes or folders and file bank statements in chronological order.

      Separate

      One of the biggest mistakes business owners make is to mix their personal and professional finances. It is best to treat the business as a separate person, from which you only take income in the form of wages, dividends and in claiming back business expenses against receipts. So keep your personal and business records separate.

      Security

      The fewer people involved in your record-keeping, the fewer the errors that are likely to creep in. Make it very clear whose responsibility it is to maintain records. It is a good idea to password-protect your computer records, and only divulge the password to a small number of people. See IT security and risks.

      Safe storage

      Even if you choose to keep all your records on a computer, it is vital that you keep a regular (weekly, if not nightly) electronic back-up, and a paper copy elsewhere. Store records that cannot be copied, such as chequebook stubs and paying-in books, in a fireproof box.

      Also on this site
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      Record-keeping and tax
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    • 5 top tips for record-keeping

      Record-keeping top tips to help you pay the tax you owe and keep an eye on financial activities.

      Whatever kind of business you run, you are required by law to keep financial records. There are also a number of business benefits to be gained from keeping accurate records such as it saves you time and money whenever you need to produce financial reports. It ensures you only pay the tax you owe and helps you keep an eye on financial activities.

      1. What should my record-keeping system include?

      There are six basic sets of financial records:

      2. Get a system in place

      Spend time setting up a system that you stick to. Allocate a regular time every week or month to deal with your financial administration or make it a key responsibility for a trusted employee or manager. It is also advisable to file all receipts logically.

      3. Separate your professional from your personal finances

      It is best to treat the business as a separate person, from which you only take income in the form of wages, dividends and in claiming back business expenses against receipts.

      4. Make security a priority

      The fewer people involved in your record-keeping, the fewer errors that are likely to creep in. It is a good idea to password-protect your company records and only divulge the password to those that need it.

      5. Safely store hardcopies of your records

      Even if you choose to keep all your records electronically, it is vital that you keep a regular electronic back-up and a paper copy elsewhere. Store records that cannot be copied, such as cheque book stubs and paying-in books in a fireproof box.

      Also on this site
      Templates for record-keeping
      Record-keeping and tax
      Content category
      Taxes

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    Part of My New Business

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    Expenses if you’re self-employed (video)

    In this guide:

    • Register for Self Assessment (video)

      How to register with HM Revenue & Customs for Self Assessment

      You will need to register for Self Assessment with HM Revenue & Customs (HMRC) if you have to send a tax return but didn't send one the previous year.

      Self Assessment registration process time

      You should note that it can take up to 20 working days to complete the registration process. You should take this into consideration to give yourself plenty of time to complete your Self Assessment return ahead of the 31 January deadline.

      Watch this short HMRC video explaining how to register your new business online with HMRC so that you can complete a Self Assessment return.

      HMRC also provide video guidance on how to register for Self Assessment if you are not self-employed.

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      Your Self Assessment return
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    • Self Assessment tax return deadlines

      Important deadline dates for your Self Assessment tax returns.

      You must send your Self Assessment tax return and pay any tax you owe to HM Revenue & Customs (HMRC) on time. There are a number of deadlines for Self Assessment that you must keep in mind.

      The last tax year started on 6 April 2023 and ended on 5 April 2024.

      Self Assessment deadlines

      Self Assessment type Deadline
      Register for Self Assessment if you're self-employed or a sole trader, not self-employed or registering a partner or partnership 11:59pm on Friday 5 October 2024
      Paper tax returns 11:59pm on Thursday 31 October 2024
      Online tax returns 11:59pm on Friday 31 January 2025
      Pay the tax you owe 11:59pm on Friday 31 January 2025


      There is usually a second payment deadline of 31 July if you make advance payments towards your bill, known as payments on account.

      If you fail to meet the deadline you may have to pay a penalty. You can appeal against a penalty if you have a reasonable excuse.

      When the deadline is different

      Submit your online return by 30 December if you want HMRC to automatically collect tax you owe from your wages and pension. You must be eligible.

      HMRC must receive a paper tax return by 31 January if you're a trustee of a registered pension scheme or a non-resident company. You can't send a return online.

      HMRC might also email or write to you giving you a different deadline.

      Partnership returns if you have a company as a partner

      If your partnership’s accounting date is between 1 February and 5 April and one of your partners is a limited company, the deadline for:

      • online returns is 12 months from the accounting date
      • paper returns is 9 months from the accounting date

      2022 to 2023 tax year and earlier

      The Self Assessment deadline for these tax years has passed. Send your tax return or payment as soon as possible - you’ll have to pay a penalty.

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      Self Assessment tax return deadlines
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    • Complete your Self Assessment tax return (video)

      How to complete and submit your Self Assessment tax return online

      Watch this short HM Revenue & Customs (HMRC) video with simple guidance on how to fill in and submit your Self Assessment tax return. This video is particularly useful if you are completing your first Self Assessment tax return.

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    • View your Self Assessment calculation (video)

      How to view your online tax calculation for Self Assessment

      When you use HM Revenue & Customs (HMRC) online tax return it automatically works out how much you have to pay by providing you with a result of your calculation.

      View this short HMRC video explaining how to view your Self Assessment calculation:

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    • Pay your Self Assessment tax bill (video)

      How to pay your Self Assessment tax bill

      Your tax bill refers to your bill for income tax and any Class 4 National Insurance contributions you may owe to HM Revenue & Customs (HMRC).

      View this short HMRC video explaining how you pay your Self Assessment tax bill including various payment methods and payment deadline dates:

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      Making PAYE payments to HMRC
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    • How to appeal a Self Assessment late filing penalty (video)

      Watch this video to find out more about how to appeal against a Self Assessment late filing penalty

      You may face paying a penalty if you don't submit your Self Assessment tax return on time. You may also face a penalty if you don't pay the tax you owe to HM Revenue & Customs (HMRC) by the appropriate deadline.

      View this short HMRC video explaining the penalties that can be applied in the Self Assessment system and how you can appeal against a Self Assessment late filing penalty:

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    • Budget for your Self Assessment tax bill (video)

      How to budget and prepare for your Self Assessment tax bill

      View this short HM Revenue & Customs (HMRC) video explaining how you can budget and prepare ahead for your Self Assessment tax bill including how to use the Ready Reckoner tool for the self-employed and information on the budget payment plan:

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    • Expenses if you’re self-employed (video)

      Expenses you can claim if you’re self-employed and listing these in your tax return

      If you are self-employed you may need to understand pre-trading expenses, day to day revenue expenses, capital allowances and using flat rates or simplified expenses. Access the HM Revenue & Customs (HMRC) self-employed business expenses e-learning tool.

      You can also view this short HM Revenue & Customs (HMRC) video explaining expenses you can claim if you're self-employed and how to account for these in your Self Assessment tax return:

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    • If you cannot pay your tax bill on time

      You must arrange to pay your tax bill with HM Revenue and Customs (HMRC) if you either miss a payment or know you cannot pay on time

      Contact HM Revenue and Customs (HMRC) as soon as possible if you:

      • have missed a tax deadline
      • know you will not be able to pay a tax bill on time

      If you can pay your tax bill

      If you are able to pay your tax bill in full, you should do so as soon as possible. This will stop more penalty charges and interest being added to your tax bill.

      If you cannot pay your tax bill in full

      Contact HMRC to discuss support available.

      HMRC may suggest you pay what you owe in instalments. This is called a Time to Pay arrangement.

      Pay what you owe in instalments (Time to Pay)

      How you contact HM Revenue and Customs (HMRC) to make a Time to Pay arrangement depends on what your tax bill is for.

      If you cannot pay a Self Assessment tax bill

      You can make your own Time to Pay arrangement using your Government Gateway account, if you:

      • have filed your latest tax return
      • owe less than £30,000
      • are within 60 days of the payment deadline
      • plan to pay your debt off within the next 12 months or less

      If you cannot make your own Time to Pay arrangement online

      Call the Self Assessment helpline if you cannot make your own Time to Pay Arrangement online, for example you owe more than £30,000 or need longer to pay.

      Self Assessment Payment Helpline
      Telephone: 0300 200 3822
      Monday to Friday, 8am to 6pm (excluding public holidays)

      Find out about call charges.

      If you cannot pay another type of tax

      If you or your company has got a letter or a text message about unpaid tax, then use the contact details in it to ask about a Time to Pay arrangement.

      If you’ve not had any contact from HMRC then call the Payment Support Service.

      Payment Support Service
      Telephone: 0300 200 3835
      Monday to Friday, 8am to 6pm (excluding public holidays)

      Find out about call charges

      What you’ll need to make a Time to Pay arrangement

      When you set up a Time to Pay arrangement you’ll need:

      • the relevant reference number for the tax you cannot pay, such as your unique tax reference number
      • your VAT registration number if you’re a business
      • your bank account details
      • details of any previous payments you’ve missed

      HMRC will ask you:

      • how much you can repay each month
      • if you can pay in full
      • if there are other taxes you need to pay
      • how much money you earn
      • what you usually spend (including bills and entertainment) each month
      • what savings or investments you have

      If you have savings or assets, HMRC will expect you to use these to reduce your debt as much as possible.

      If you’ve received independent debt advice, for example from Citizens Advice, you may have a ‘Standard Financial Statement’. HMRC will accept this as evidence of what you earn and spend each month.

      If your company is in tax debt

      HMRC will discuss your company’s finances with you.

      They’ll ask you to make a verbal proposal, explaining how you’ll pay your tax bill as quickly as you can. An adviser will ask questions about your proposal to make sure it is realistic and affordable for you.

      You must reduce your debt as much as possible before entering into a Time to Pay arrangement. You can do this by releasing assets like stock, vehicles and shares.

      HMRC may ask company directors to:

      • put personal funds into the business
      • accept lending
      • extend credit

      How HMRC works out your payments

      The amount you’ll be asked to pay each month is based on the money you have left after you pay any rent, food or utility bills and fixed outgoings you have, like subscriptions.

      You’ll usually be asked to pay around half of what you have left over each month towards the tax you owe.

      If you get a pension HMRC will count that as income, but will not count the amount in your pension pot as savings.

      You can also agree to pay more if you want. Paying your debt quicker means you’ll pay less in total, as interest is added to your bill each month.

      How long your Time to Pay arrangement lasts

      There is no time limit on how long a Time to Pay arrangement can last. How long yours will last depends on how much you owe and what you can afford to pay each month.

      Contact HMRC if anything changes that you think affects your Time to Pay arrangement. The arrangement can be made longer or shorter.

      If HMRC finds out that something has changed in your circumstances, they may contact you to discuss changing your repayments.

      When you cannot pay in instalments

      You cannot set up a Time to Pay arrangement if HMRC do not believe you will follow a repayment plan. For example, if you have not paid taxes in the past.

      If HMRC cannot agree a payment plan with you, they’ll ask you to pay the amount you owe in full. They can collect unpaid tax directly if you refuse to pay.

      After a Time to Pay arrangement has been agreed

      If you miss a payment, HMRC will contact you to find out why. Where possible, HMRC will restore the payment arrangement or renegotiate it with you.

      If you cannot pay another tax bill, contact HMRC. You may be able to include the new tax bill in your existing Time to Pay arrangement.

      If you do not contact HMRC or refuse to pay

      HM Revenue and Customs (HMRC) will always try to contact you if you miss a tax payment. This can include sending you letters, texts and visiting you at home or at work.

      If you do not get in contact with HMRC or cannot agree an instalment plan then HMRC may:

      • ask a debt collection agency to collect the money
      • collect what you owe directly from your wages or any monthly pension payments you get
      • take things you own and sell them (if you live in England, Wales or Northern Ireland)
      • take money directly from your bank account or building society savings (if you live in England, Wales or Northern Ireland)
      • take you to court
      • make you bankrupt
      • close down your company if the tax is a business tax

      Any costs, like auction fees, are normally added to your debt. HMRC will tell you before taking any of these actions and will explain your rights, costs and options.

      Read more about actions HMRC can take to recover tax.

      Help and advice

      If you’re in Northern Ireland, you can get free debt advice from Advice NI.

      Making a complaint

      You cannot appeal against HM Revenue and Customs’ (HMRC) decision, but you can make a complaint if you’re unhappy about how you were treated.

      Also on this site
      Tax payment problems
      Help and support for the self-employed
      Primary parent
      Self Assessment
      Content category
      Taxes

      Source URL

      /content/if-you-cannot-pay-your-tax-bill-time

      Links

    • Stop being self-employed (video)

      Step-by-step video guide to stopping your Self Assessment online if you're self-employed

      You must tell HM Revenue and Customs (HMRC) if you’ve stopped trading as a sole trader or you’re ending or leaving a business partnership.

      You’ll also need to send a final tax return.

      Watch this short HMRC video explaining how to go online and stop Self Assessment if you're self-employed:

      Developed with
      HM Revenue & Customs
      Also on this site
      Stopping self-employment
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/stop-being-self-employed-video

      Links

    Budget for your Self Assessment tax bill (video)

    In this guide:

    • Register for Self Assessment (video)

      How to register with HM Revenue & Customs for Self Assessment

      You will need to register for Self Assessment with HM Revenue & Customs (HMRC) if you have to send a tax return but didn't send one the previous year.

      Self Assessment registration process time

      You should note that it can take up to 20 working days to complete the registration process. You should take this into consideration to give yourself plenty of time to complete your Self Assessment return ahead of the 31 January deadline.

      Watch this short HMRC video explaining how to register your new business online with HMRC so that you can complete a Self Assessment return.

      HMRC also provide video guidance on how to register for Self Assessment if you are not self-employed.

      Developed with
      HM Revenue & Customs
      Also on this site
      Your Self Assessment return
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/register-self-assessment-video

      Links

    • Self Assessment tax return deadlines

      Important deadline dates for your Self Assessment tax returns.

      You must send your Self Assessment tax return and pay any tax you owe to HM Revenue & Customs (HMRC) on time. There are a number of deadlines for Self Assessment that you must keep in mind.

      The last tax year started on 6 April 2023 and ended on 5 April 2024.

      Self Assessment deadlines

      Self Assessment type Deadline
      Register for Self Assessment if you're self-employed or a sole trader, not self-employed or registering a partner or partnership 11:59pm on Friday 5 October 2024
      Paper tax returns 11:59pm on Thursday 31 October 2024
      Online tax returns 11:59pm on Friday 31 January 2025
      Pay the tax you owe 11:59pm on Friday 31 January 2025


      There is usually a second payment deadline of 31 July if you make advance payments towards your bill, known as payments on account.

      If you fail to meet the deadline you may have to pay a penalty. You can appeal against a penalty if you have a reasonable excuse.

      When the deadline is different

      Submit your online return by 30 December if you want HMRC to automatically collect tax you owe from your wages and pension. You must be eligible.

      HMRC must receive a paper tax return by 31 January if you're a trustee of a registered pension scheme or a non-resident company. You can't send a return online.

      HMRC might also email or write to you giving you a different deadline.

      Partnership returns if you have a company as a partner

      If your partnership’s accounting date is between 1 February and 5 April and one of your partners is a limited company, the deadline for:

      • online returns is 12 months from the accounting date
      • paper returns is 9 months from the accounting date

      2022 to 2023 tax year and earlier

      The Self Assessment deadline for these tax years has passed. Send your tax return or payment as soon as possible - you’ll have to pay a penalty.

      Developed with
      HM Revenue & Customs
      Actions
      Self Assessment tax return deadlines
      Also on this site
      Your Self Assessment return
      Help and support for the self-employed
      Content category
      Taxes

      Source URL

      /content/self-assessment-tax-return-deadlines

      Links

    • Complete your Self Assessment tax return (video)

      How to complete and submit your Self Assessment tax return online

      Watch this short HM Revenue & Customs (HMRC) video with simple guidance on how to fill in and submit your Self Assessment tax return. This video is particularly useful if you are completing your first Self Assessment tax return.

      Developed with
      HM Revenue & Customs
      Also on this site
      Your Self Assessment return
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/complete-your-self-assessment-tax-return-video

      Links

    • View your Self Assessment calculation (video)

      How to view your online tax calculation for Self Assessment

      When you use HM Revenue & Customs (HMRC) online tax return it automatically works out how much you have to pay by providing you with a result of your calculation.

      View this short HMRC video explaining how to view your Self Assessment calculation:

      Developed with
      HM Revenue & Customs
      Also on this site
      Your Self Assessment return
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/view-your-self-assessment-calculation-video

      Links

    • Pay your Self Assessment tax bill (video)

      How to pay your Self Assessment tax bill

      Your tax bill refers to your bill for income tax and any Class 4 National Insurance contributions you may owe to HM Revenue & Customs (HMRC).

      View this short HMRC video explaining how you pay your Self Assessment tax bill including various payment methods and payment deadline dates:

      Developed with
      HM Revenue & Customs
      Also on this site
      Making PAYE payments to HMRC
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/pay-your-self-assessment-tax-bill-video

      Links

    • How to appeal a Self Assessment late filing penalty (video)

      Watch this video to find out more about how to appeal against a Self Assessment late filing penalty

      You may face paying a penalty if you don't submit your Self Assessment tax return on time. You may also face a penalty if you don't pay the tax you owe to HM Revenue & Customs (HMRC) by the appropriate deadline.

      View this short HMRC video explaining the penalties that can be applied in the Self Assessment system and how you can appeal against a Self Assessment late filing penalty:

      Developed with
      HM Revenue & Customs
      Also on this site
      Self Assessment refunds, appeals and penalties
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/how-appeal-self-assessment-late-filing-penalty-video

      Links

    • Budget for your Self Assessment tax bill (video)

      How to budget and prepare for your Self Assessment tax bill

      View this short HM Revenue & Customs (HMRC) video explaining how you can budget and prepare ahead for your Self Assessment tax bill including how to use the Ready Reckoner tool for the self-employed and information on the budget payment plan:

      Developed with
      HM Revenue & Customs
      Actions
      Budget for your Self Assessment tax bill using the Ready Reckoner
      Budget payment plan
      Also on this site
      Your tax bill and Self Assessment
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/budget-your-self-assessment-tax-bill-video

      Links

    • Expenses if you’re self-employed (video)

      Expenses you can claim if you’re self-employed and listing these in your tax return

      If you are self-employed you may need to understand pre-trading expenses, day to day revenue expenses, capital allowances and using flat rates or simplified expenses. Access the HM Revenue & Customs (HMRC) self-employed business expenses e-learning tool.

      You can also view this short HM Revenue & Customs (HMRC) video explaining expenses you can claim if you're self-employed and how to account for these in your Self Assessment tax return:

      Developed with
      HM Revenue & Customs
      Actions
      Self-employed business expenses (e-learning)
      Also on this site
      Expenses and benefits
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/expenses-if-youre-self-employed-video

      Links

    • If you cannot pay your tax bill on time

      You must arrange to pay your tax bill with HM Revenue and Customs (HMRC) if you either miss a payment or know you cannot pay on time

      Contact HM Revenue and Customs (HMRC) as soon as possible if you:

      • have missed a tax deadline
      • know you will not be able to pay a tax bill on time

      If you can pay your tax bill

      If you are able to pay your tax bill in full, you should do so as soon as possible. This will stop more penalty charges and interest being added to your tax bill.

      If you cannot pay your tax bill in full

      Contact HMRC to discuss support available.

      HMRC may suggest you pay what you owe in instalments. This is called a Time to Pay arrangement.

      Pay what you owe in instalments (Time to Pay)

      How you contact HM Revenue and Customs (HMRC) to make a Time to Pay arrangement depends on what your tax bill is for.

      If you cannot pay a Self Assessment tax bill

      You can make your own Time to Pay arrangement using your Government Gateway account, if you:

      • have filed your latest tax return
      • owe less than £30,000
      • are within 60 days of the payment deadline
      • plan to pay your debt off within the next 12 months or less

      If you cannot make your own Time to Pay arrangement online

      Call the Self Assessment helpline if you cannot make your own Time to Pay Arrangement online, for example you owe more than £30,000 or need longer to pay.

      Self Assessment Payment Helpline
      Telephone: 0300 200 3822
      Monday to Friday, 8am to 6pm (excluding public holidays)

      Find out about call charges.

      If you cannot pay another type of tax

      If you or your company has got a letter or a text message about unpaid tax, then use the contact details in it to ask about a Time to Pay arrangement.

      If you’ve not had any contact from HMRC then call the Payment Support Service.

      Payment Support Service
      Telephone: 0300 200 3835
      Monday to Friday, 8am to 6pm (excluding public holidays)

      Find out about call charges

      What you’ll need to make a Time to Pay arrangement

      When you set up a Time to Pay arrangement you’ll need:

      • the relevant reference number for the tax you cannot pay, such as your unique tax reference number
      • your VAT registration number if you’re a business
      • your bank account details
      • details of any previous payments you’ve missed

      HMRC will ask you:

      • how much you can repay each month
      • if you can pay in full
      • if there are other taxes you need to pay
      • how much money you earn
      • what you usually spend (including bills and entertainment) each month
      • what savings or investments you have

      If you have savings or assets, HMRC will expect you to use these to reduce your debt as much as possible.

      If you’ve received independent debt advice, for example from Citizens Advice, you may have a ‘Standard Financial Statement’. HMRC will accept this as evidence of what you earn and spend each month.

      If your company is in tax debt

      HMRC will discuss your company’s finances with you.

      They’ll ask you to make a verbal proposal, explaining how you’ll pay your tax bill as quickly as you can. An adviser will ask questions about your proposal to make sure it is realistic and affordable for you.

      You must reduce your debt as much as possible before entering into a Time to Pay arrangement. You can do this by releasing assets like stock, vehicles and shares.

      HMRC may ask company directors to:

      • put personal funds into the business
      • accept lending
      • extend credit

      How HMRC works out your payments

      The amount you’ll be asked to pay each month is based on the money you have left after you pay any rent, food or utility bills and fixed outgoings you have, like subscriptions.

      You’ll usually be asked to pay around half of what you have left over each month towards the tax you owe.

      If you get a pension HMRC will count that as income, but will not count the amount in your pension pot as savings.

      You can also agree to pay more if you want. Paying your debt quicker means you’ll pay less in total, as interest is added to your bill each month.

      How long your Time to Pay arrangement lasts

      There is no time limit on how long a Time to Pay arrangement can last. How long yours will last depends on how much you owe and what you can afford to pay each month.

      Contact HMRC if anything changes that you think affects your Time to Pay arrangement. The arrangement can be made longer or shorter.

      If HMRC finds out that something has changed in your circumstances, they may contact you to discuss changing your repayments.

      When you cannot pay in instalments

      You cannot set up a Time to Pay arrangement if HMRC do not believe you will follow a repayment plan. For example, if you have not paid taxes in the past.

      If HMRC cannot agree a payment plan with you, they’ll ask you to pay the amount you owe in full. They can collect unpaid tax directly if you refuse to pay.

      After a Time to Pay arrangement has been agreed

      If you miss a payment, HMRC will contact you to find out why. Where possible, HMRC will restore the payment arrangement or renegotiate it with you.

      If you cannot pay another tax bill, contact HMRC. You may be able to include the new tax bill in your existing Time to Pay arrangement.

      If you do not contact HMRC or refuse to pay

      HM Revenue and Customs (HMRC) will always try to contact you if you miss a tax payment. This can include sending you letters, texts and visiting you at home or at work.

      If you do not get in contact with HMRC or cannot agree an instalment plan then HMRC may:

      • ask a debt collection agency to collect the money
      • collect what you owe directly from your wages or any monthly pension payments you get
      • take things you own and sell them (if you live in England, Wales or Northern Ireland)
      • take money directly from your bank account or building society savings (if you live in England, Wales or Northern Ireland)
      • take you to court
      • make you bankrupt
      • close down your company if the tax is a business tax

      Any costs, like auction fees, are normally added to your debt. HMRC will tell you before taking any of these actions and will explain your rights, costs and options.

      Read more about actions HMRC can take to recover tax.

      Help and advice

      If you’re in Northern Ireland, you can get free debt advice from Advice NI.

      Making a complaint

      You cannot appeal against HM Revenue and Customs’ (HMRC) decision, but you can make a complaint if you’re unhappy about how you were treated.

      Also on this site
      Tax payment problems
      Help and support for the self-employed
      Primary parent
      Self Assessment
      Content category
      Taxes

      Source URL

      /content/if-you-cannot-pay-your-tax-bill-time

      Links

    • Stop being self-employed (video)

      Step-by-step video guide to stopping your Self Assessment online if you're self-employed

      You must tell HM Revenue and Customs (HMRC) if you’ve stopped trading as a sole trader or you’re ending or leaving a business partnership.

      You’ll also need to send a final tax return.

      Watch this short HMRC video explaining how to go online and stop Self Assessment if you're self-employed:

      Developed with
      HM Revenue & Customs
      Also on this site
      Stopping self-employment
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/stop-being-self-employed-video

      Links

    Pay your Self Assessment tax bill (video)

    In this guide:

    • Register for Self Assessment (video)

      How to register with HM Revenue & Customs for Self Assessment

      You will need to register for Self Assessment with HM Revenue & Customs (HMRC) if you have to send a tax return but didn't send one the previous year.

      Self Assessment registration process time

      You should note that it can take up to 20 working days to complete the registration process. You should take this into consideration to give yourself plenty of time to complete your Self Assessment return ahead of the 31 January deadline.

      Watch this short HMRC video explaining how to register your new business online with HMRC so that you can complete a Self Assessment return.

      HMRC also provide video guidance on how to register for Self Assessment if you are not self-employed.

      Developed with
      HM Revenue & Customs
      Also on this site
      Your Self Assessment return
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/register-self-assessment-video

      Links

    • Self Assessment tax return deadlines

      Important deadline dates for your Self Assessment tax returns.

      You must send your Self Assessment tax return and pay any tax you owe to HM Revenue & Customs (HMRC) on time. There are a number of deadlines for Self Assessment that you must keep in mind.

      The last tax year started on 6 April 2023 and ended on 5 April 2024.

      Self Assessment deadlines

      Self Assessment type Deadline
      Register for Self Assessment if you're self-employed or a sole trader, not self-employed or registering a partner or partnership 11:59pm on Friday 5 October 2024
      Paper tax returns 11:59pm on Thursday 31 October 2024
      Online tax returns 11:59pm on Friday 31 January 2025
      Pay the tax you owe 11:59pm on Friday 31 January 2025


      There is usually a second payment deadline of 31 July if you make advance payments towards your bill, known as payments on account.

      If you fail to meet the deadline you may have to pay a penalty. You can appeal against a penalty if you have a reasonable excuse.

      When the deadline is different

      Submit your online return by 30 December if you want HMRC to automatically collect tax you owe from your wages and pension. You must be eligible.

      HMRC must receive a paper tax return by 31 January if you're a trustee of a registered pension scheme or a non-resident company. You can't send a return online.

      HMRC might also email or write to you giving you a different deadline.

      Partnership returns if you have a company as a partner

      If your partnership’s accounting date is between 1 February and 5 April and one of your partners is a limited company, the deadline for:

      • online returns is 12 months from the accounting date
      • paper returns is 9 months from the accounting date

      2022 to 2023 tax year and earlier

      The Self Assessment deadline for these tax years has passed. Send your tax return or payment as soon as possible - you’ll have to pay a penalty.

      Developed with
      HM Revenue & Customs
      Actions
      Self Assessment tax return deadlines
      Also on this site
      Your Self Assessment return
      Help and support for the self-employed
      Content category
      Taxes

      Source URL

      /content/self-assessment-tax-return-deadlines

      Links

    • Complete your Self Assessment tax return (video)

      How to complete and submit your Self Assessment tax return online

      Watch this short HM Revenue & Customs (HMRC) video with simple guidance on how to fill in and submit your Self Assessment tax return. This video is particularly useful if you are completing your first Self Assessment tax return.

      Developed with
      HM Revenue & Customs
      Also on this site
      Your Self Assessment return
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/complete-your-self-assessment-tax-return-video

      Links

    • View your Self Assessment calculation (video)

      How to view your online tax calculation for Self Assessment

      When you use HM Revenue & Customs (HMRC) online tax return it automatically works out how much you have to pay by providing you with a result of your calculation.

      View this short HMRC video explaining how to view your Self Assessment calculation:

      Developed with
      HM Revenue & Customs
      Also on this site
      Your Self Assessment return
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/view-your-self-assessment-calculation-video

      Links

    • Pay your Self Assessment tax bill (video)

      How to pay your Self Assessment tax bill

      Your tax bill refers to your bill for income tax and any Class 4 National Insurance contributions you may owe to HM Revenue & Customs (HMRC).

      View this short HMRC video explaining how you pay your Self Assessment tax bill including various payment methods and payment deadline dates:

      Developed with
      HM Revenue & Customs
      Also on this site
      Making PAYE payments to HMRC
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/pay-your-self-assessment-tax-bill-video

      Links

    • How to appeal a Self Assessment late filing penalty (video)

      Watch this video to find out more about how to appeal against a Self Assessment late filing penalty

      You may face paying a penalty if you don't submit your Self Assessment tax return on time. You may also face a penalty if you don't pay the tax you owe to HM Revenue & Customs (HMRC) by the appropriate deadline.

      View this short HMRC video explaining the penalties that can be applied in the Self Assessment system and how you can appeal against a Self Assessment late filing penalty:

      Developed with
      HM Revenue & Customs
      Also on this site
      Self Assessment refunds, appeals and penalties
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/how-appeal-self-assessment-late-filing-penalty-video

      Links

    • Budget for your Self Assessment tax bill (video)

      How to budget and prepare for your Self Assessment tax bill

      View this short HM Revenue & Customs (HMRC) video explaining how you can budget and prepare ahead for your Self Assessment tax bill including how to use the Ready Reckoner tool for the self-employed and information on the budget payment plan:

      Developed with
      HM Revenue & Customs
      Actions
      Budget for your Self Assessment tax bill using the Ready Reckoner
      Budget payment plan
      Also on this site
      Your tax bill and Self Assessment
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/budget-your-self-assessment-tax-bill-video

      Links

    • Expenses if you’re self-employed (video)

      Expenses you can claim if you’re self-employed and listing these in your tax return

      If you are self-employed you may need to understand pre-trading expenses, day to day revenue expenses, capital allowances and using flat rates or simplified expenses. Access the HM Revenue & Customs (HMRC) self-employed business expenses e-learning tool.

      You can also view this short HM Revenue & Customs (HMRC) video explaining expenses you can claim if you're self-employed and how to account for these in your Self Assessment tax return:

      Developed with
      HM Revenue & Customs
      Actions
      Self-employed business expenses (e-learning)
      Also on this site
      Expenses and benefits
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/expenses-if-youre-self-employed-video

      Links

    • If you cannot pay your tax bill on time

      You must arrange to pay your tax bill with HM Revenue and Customs (HMRC) if you either miss a payment or know you cannot pay on time

      Contact HM Revenue and Customs (HMRC) as soon as possible if you:

      • have missed a tax deadline
      • know you will not be able to pay a tax bill on time

      If you can pay your tax bill

      If you are able to pay your tax bill in full, you should do so as soon as possible. This will stop more penalty charges and interest being added to your tax bill.

      If you cannot pay your tax bill in full

      Contact HMRC to discuss support available.

      HMRC may suggest you pay what you owe in instalments. This is called a Time to Pay arrangement.

      Pay what you owe in instalments (Time to Pay)

      How you contact HM Revenue and Customs (HMRC) to make a Time to Pay arrangement depends on what your tax bill is for.

      If you cannot pay a Self Assessment tax bill

      You can make your own Time to Pay arrangement using your Government Gateway account, if you:

      • have filed your latest tax return
      • owe less than £30,000
      • are within 60 days of the payment deadline
      • plan to pay your debt off within the next 12 months or less

      If you cannot make your own Time to Pay arrangement online

      Call the Self Assessment helpline if you cannot make your own Time to Pay Arrangement online, for example you owe more than £30,000 or need longer to pay.

      Self Assessment Payment Helpline
      Telephone: 0300 200 3822
      Monday to Friday, 8am to 6pm (excluding public holidays)

      Find out about call charges.

      If you cannot pay another type of tax

      If you or your company has got a letter or a text message about unpaid tax, then use the contact details in it to ask about a Time to Pay arrangement.

      If you’ve not had any contact from HMRC then call the Payment Support Service.

      Payment Support Service
      Telephone: 0300 200 3835
      Monday to Friday, 8am to 6pm (excluding public holidays)

      Find out about call charges

      What you’ll need to make a Time to Pay arrangement

      When you set up a Time to Pay arrangement you’ll need:

      • the relevant reference number for the tax you cannot pay, such as your unique tax reference number
      • your VAT registration number if you’re a business
      • your bank account details
      • details of any previous payments you’ve missed

      HMRC will ask you:

      • how much you can repay each month
      • if you can pay in full
      • if there are other taxes you need to pay
      • how much money you earn
      • what you usually spend (including bills and entertainment) each month
      • what savings or investments you have

      If you have savings or assets, HMRC will expect you to use these to reduce your debt as much as possible.

      If you’ve received independent debt advice, for example from Citizens Advice, you may have a ‘Standard Financial Statement’. HMRC will accept this as evidence of what you earn and spend each month.

      If your company is in tax debt

      HMRC will discuss your company’s finances with you.

      They’ll ask you to make a verbal proposal, explaining how you’ll pay your tax bill as quickly as you can. An adviser will ask questions about your proposal to make sure it is realistic and affordable for you.

      You must reduce your debt as much as possible before entering into a Time to Pay arrangement. You can do this by releasing assets like stock, vehicles and shares.

      HMRC may ask company directors to:

      • put personal funds into the business
      • accept lending
      • extend credit

      How HMRC works out your payments

      The amount you’ll be asked to pay each month is based on the money you have left after you pay any rent, food or utility bills and fixed outgoings you have, like subscriptions.

      You’ll usually be asked to pay around half of what you have left over each month towards the tax you owe.

      If you get a pension HMRC will count that as income, but will not count the amount in your pension pot as savings.

      You can also agree to pay more if you want. Paying your debt quicker means you’ll pay less in total, as interest is added to your bill each month.

      How long your Time to Pay arrangement lasts

      There is no time limit on how long a Time to Pay arrangement can last. How long yours will last depends on how much you owe and what you can afford to pay each month.

      Contact HMRC if anything changes that you think affects your Time to Pay arrangement. The arrangement can be made longer or shorter.

      If HMRC finds out that something has changed in your circumstances, they may contact you to discuss changing your repayments.

      When you cannot pay in instalments

      You cannot set up a Time to Pay arrangement if HMRC do not believe you will follow a repayment plan. For example, if you have not paid taxes in the past.

      If HMRC cannot agree a payment plan with you, they’ll ask you to pay the amount you owe in full. They can collect unpaid tax directly if you refuse to pay.

      After a Time to Pay arrangement has been agreed

      If you miss a payment, HMRC will contact you to find out why. Where possible, HMRC will restore the payment arrangement or renegotiate it with you.

      If you cannot pay another tax bill, contact HMRC. You may be able to include the new tax bill in your existing Time to Pay arrangement.

      If you do not contact HMRC or refuse to pay

      HM Revenue and Customs (HMRC) will always try to contact you if you miss a tax payment. This can include sending you letters, texts and visiting you at home or at work.

      If you do not get in contact with HMRC or cannot agree an instalment plan then HMRC may:

      • ask a debt collection agency to collect the money
      • collect what you owe directly from your wages or any monthly pension payments you get
      • take things you own and sell them (if you live in England, Wales or Northern Ireland)
      • take money directly from your bank account or building society savings (if you live in England, Wales or Northern Ireland)
      • take you to court
      • make you bankrupt
      • close down your company if the tax is a business tax

      Any costs, like auction fees, are normally added to your debt. HMRC will tell you before taking any of these actions and will explain your rights, costs and options.

      Read more about actions HMRC can take to recover tax.

      Help and advice

      If you’re in Northern Ireland, you can get free debt advice from Advice NI.

      Making a complaint

      You cannot appeal against HM Revenue and Customs’ (HMRC) decision, but you can make a complaint if you’re unhappy about how you were treated.

      Also on this site
      Tax payment problems
      Help and support for the self-employed
      Primary parent
      Self Assessment
      Content category
      Taxes

      Source URL

      /content/if-you-cannot-pay-your-tax-bill-time

      Links

    • Stop being self-employed (video)

      Step-by-step video guide to stopping your Self Assessment online if you're self-employed

      You must tell HM Revenue and Customs (HMRC) if you’ve stopped trading as a sole trader or you’re ending or leaving a business partnership.

      You’ll also need to send a final tax return.

      Watch this short HMRC video explaining how to go online and stop Self Assessment if you're self-employed:

      Developed with
      HM Revenue & Customs
      Also on this site
      Stopping self-employment
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/stop-being-self-employed-video

      Links

    View your Self Assessment calculation (video)

    In this guide:

    • Register for Self Assessment (video)

      How to register with HM Revenue & Customs for Self Assessment

      You will need to register for Self Assessment with HM Revenue & Customs (HMRC) if you have to send a tax return but didn't send one the previous year.

      Self Assessment registration process time

      You should note that it can take up to 20 working days to complete the registration process. You should take this into consideration to give yourself plenty of time to complete your Self Assessment return ahead of the 31 January deadline.

      Watch this short HMRC video explaining how to register your new business online with HMRC so that you can complete a Self Assessment return.

      HMRC also provide video guidance on how to register for Self Assessment if you are not self-employed.

      Developed with
      HM Revenue & Customs
      Also on this site
      Your Self Assessment return
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/register-self-assessment-video

      Links

    • Self Assessment tax return deadlines

      Important deadline dates for your Self Assessment tax returns.

      You must send your Self Assessment tax return and pay any tax you owe to HM Revenue & Customs (HMRC) on time. There are a number of deadlines for Self Assessment that you must keep in mind.

      The last tax year started on 6 April 2023 and ended on 5 April 2024.

      Self Assessment deadlines

      Self Assessment type Deadline
      Register for Self Assessment if you're self-employed or a sole trader, not self-employed or registering a partner or partnership 11:59pm on Friday 5 October 2024
      Paper tax returns 11:59pm on Thursday 31 October 2024
      Online tax returns 11:59pm on Friday 31 January 2025
      Pay the tax you owe 11:59pm on Friday 31 January 2025


      There is usually a second payment deadline of 31 July if you make advance payments towards your bill, known as payments on account.

      If you fail to meet the deadline you may have to pay a penalty. You can appeal against a penalty if you have a reasonable excuse.

      When the deadline is different

      Submit your online return by 30 December if you want HMRC to automatically collect tax you owe from your wages and pension. You must be eligible.

      HMRC must receive a paper tax return by 31 January if you're a trustee of a registered pension scheme or a non-resident company. You can't send a return online.

      HMRC might also email or write to you giving you a different deadline.

      Partnership returns if you have a company as a partner

      If your partnership’s accounting date is between 1 February and 5 April and one of your partners is a limited company, the deadline for:

      • online returns is 12 months from the accounting date
      • paper returns is 9 months from the accounting date

      2022 to 2023 tax year and earlier

      The Self Assessment deadline for these tax years has passed. Send your tax return or payment as soon as possible - you’ll have to pay a penalty.

      Developed with
      HM Revenue & Customs
      Actions
      Self Assessment tax return deadlines
      Also on this site
      Your Self Assessment return
      Help and support for the self-employed
      Content category
      Taxes

      Source URL

      /content/self-assessment-tax-return-deadlines

      Links

    • Complete your Self Assessment tax return (video)

      How to complete and submit your Self Assessment tax return online

      Watch this short HM Revenue & Customs (HMRC) video with simple guidance on how to fill in and submit your Self Assessment tax return. This video is particularly useful if you are completing your first Self Assessment tax return.

      Developed with
      HM Revenue & Customs
      Also on this site
      Your Self Assessment return
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/complete-your-self-assessment-tax-return-video

      Links

    • View your Self Assessment calculation (video)

      How to view your online tax calculation for Self Assessment

      When you use HM Revenue & Customs (HMRC) online tax return it automatically works out how much you have to pay by providing you with a result of your calculation.

      View this short HMRC video explaining how to view your Self Assessment calculation:

      Developed with
      HM Revenue & Customs
      Also on this site
      Your Self Assessment return
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/view-your-self-assessment-calculation-video

      Links

    • Pay your Self Assessment tax bill (video)

      How to pay your Self Assessment tax bill

      Your tax bill refers to your bill for income tax and any Class 4 National Insurance contributions you may owe to HM Revenue & Customs (HMRC).

      View this short HMRC video explaining how you pay your Self Assessment tax bill including various payment methods and payment deadline dates:

      Developed with
      HM Revenue & Customs
      Also on this site
      Making PAYE payments to HMRC
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/pay-your-self-assessment-tax-bill-video

      Links

    • How to appeal a Self Assessment late filing penalty (video)

      Watch this video to find out more about how to appeal against a Self Assessment late filing penalty

      You may face paying a penalty if you don't submit your Self Assessment tax return on time. You may also face a penalty if you don't pay the tax you owe to HM Revenue & Customs (HMRC) by the appropriate deadline.

      View this short HMRC video explaining the penalties that can be applied in the Self Assessment system and how you can appeal against a Self Assessment late filing penalty:

      Developed with
      HM Revenue & Customs
      Also on this site
      Self Assessment refunds, appeals and penalties
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/how-appeal-self-assessment-late-filing-penalty-video

      Links

    • Budget for your Self Assessment tax bill (video)

      How to budget and prepare for your Self Assessment tax bill

      View this short HM Revenue & Customs (HMRC) video explaining how you can budget and prepare ahead for your Self Assessment tax bill including how to use the Ready Reckoner tool for the self-employed and information on the budget payment plan:

      Developed with
      HM Revenue & Customs
      Actions
      Budget for your Self Assessment tax bill using the Ready Reckoner
      Budget payment plan
      Also on this site
      Your tax bill and Self Assessment
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/budget-your-self-assessment-tax-bill-video

      Links

    • Expenses if you’re self-employed (video)

      Expenses you can claim if you’re self-employed and listing these in your tax return

      If you are self-employed you may need to understand pre-trading expenses, day to day revenue expenses, capital allowances and using flat rates or simplified expenses. Access the HM Revenue & Customs (HMRC) self-employed business expenses e-learning tool.

      You can also view this short HM Revenue & Customs (HMRC) video explaining expenses you can claim if you're self-employed and how to account for these in your Self Assessment tax return:

      Developed with
      HM Revenue & Customs
      Actions
      Self-employed business expenses (e-learning)
      Also on this site
      Expenses and benefits
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/expenses-if-youre-self-employed-video

      Links

    • If you cannot pay your tax bill on time

      You must arrange to pay your tax bill with HM Revenue and Customs (HMRC) if you either miss a payment or know you cannot pay on time

      Contact HM Revenue and Customs (HMRC) as soon as possible if you:

      • have missed a tax deadline
      • know you will not be able to pay a tax bill on time

      If you can pay your tax bill

      If you are able to pay your tax bill in full, you should do so as soon as possible. This will stop more penalty charges and interest being added to your tax bill.

      If you cannot pay your tax bill in full

      Contact HMRC to discuss support available.

      HMRC may suggest you pay what you owe in instalments. This is called a Time to Pay arrangement.

      Pay what you owe in instalments (Time to Pay)

      How you contact HM Revenue and Customs (HMRC) to make a Time to Pay arrangement depends on what your tax bill is for.

      If you cannot pay a Self Assessment tax bill

      You can make your own Time to Pay arrangement using your Government Gateway account, if you:

      • have filed your latest tax return
      • owe less than £30,000
      • are within 60 days of the payment deadline
      • plan to pay your debt off within the next 12 months or less

      If you cannot make your own Time to Pay arrangement online

      Call the Self Assessment helpline if you cannot make your own Time to Pay Arrangement online, for example you owe more than £30,000 or need longer to pay.

      Self Assessment Payment Helpline
      Telephone: 0300 200 3822
      Monday to Friday, 8am to 6pm (excluding public holidays)

      Find out about call charges.

      If you cannot pay another type of tax

      If you or your company has got a letter or a text message about unpaid tax, then use the contact details in it to ask about a Time to Pay arrangement.

      If you’ve not had any contact from HMRC then call the Payment Support Service.

      Payment Support Service
      Telephone: 0300 200 3835
      Monday to Friday, 8am to 6pm (excluding public holidays)

      Find out about call charges

      What you’ll need to make a Time to Pay arrangement

      When you set up a Time to Pay arrangement you’ll need:

      • the relevant reference number for the tax you cannot pay, such as your unique tax reference number
      • your VAT registration number if you’re a business
      • your bank account details
      • details of any previous payments you’ve missed

      HMRC will ask you:

      • how much you can repay each month
      • if you can pay in full
      • if there are other taxes you need to pay
      • how much money you earn
      • what you usually spend (including bills and entertainment) each month
      • what savings or investments you have

      If you have savings or assets, HMRC will expect you to use these to reduce your debt as much as possible.

      If you’ve received independent debt advice, for example from Citizens Advice, you may have a ‘Standard Financial Statement’. HMRC will accept this as evidence of what you earn and spend each month.

      If your company is in tax debt

      HMRC will discuss your company’s finances with you.

      They’ll ask you to make a verbal proposal, explaining how you’ll pay your tax bill as quickly as you can. An adviser will ask questions about your proposal to make sure it is realistic and affordable for you.

      You must reduce your debt as much as possible before entering into a Time to Pay arrangement. You can do this by releasing assets like stock, vehicles and shares.

      HMRC may ask company directors to:

      • put personal funds into the business
      • accept lending
      • extend credit

      How HMRC works out your payments

      The amount you’ll be asked to pay each month is based on the money you have left after you pay any rent, food or utility bills and fixed outgoings you have, like subscriptions.

      You’ll usually be asked to pay around half of what you have left over each month towards the tax you owe.

      If you get a pension HMRC will count that as income, but will not count the amount in your pension pot as savings.

      You can also agree to pay more if you want. Paying your debt quicker means you’ll pay less in total, as interest is added to your bill each month.

      How long your Time to Pay arrangement lasts

      There is no time limit on how long a Time to Pay arrangement can last. How long yours will last depends on how much you owe and what you can afford to pay each month.

      Contact HMRC if anything changes that you think affects your Time to Pay arrangement. The arrangement can be made longer or shorter.

      If HMRC finds out that something has changed in your circumstances, they may contact you to discuss changing your repayments.

      When you cannot pay in instalments

      You cannot set up a Time to Pay arrangement if HMRC do not believe you will follow a repayment plan. For example, if you have not paid taxes in the past.

      If HMRC cannot agree a payment plan with you, they’ll ask you to pay the amount you owe in full. They can collect unpaid tax directly if you refuse to pay.

      After a Time to Pay arrangement has been agreed

      If you miss a payment, HMRC will contact you to find out why. Where possible, HMRC will restore the payment arrangement or renegotiate it with you.

      If you cannot pay another tax bill, contact HMRC. You may be able to include the new tax bill in your existing Time to Pay arrangement.

      If you do not contact HMRC or refuse to pay

      HM Revenue and Customs (HMRC) will always try to contact you if you miss a tax payment. This can include sending you letters, texts and visiting you at home or at work.

      If you do not get in contact with HMRC or cannot agree an instalment plan then HMRC may:

      • ask a debt collection agency to collect the money
      • collect what you owe directly from your wages or any monthly pension payments you get
      • take things you own and sell them (if you live in England, Wales or Northern Ireland)
      • take money directly from your bank account or building society savings (if you live in England, Wales or Northern Ireland)
      • take you to court
      • make you bankrupt
      • close down your company if the tax is a business tax

      Any costs, like auction fees, are normally added to your debt. HMRC will tell you before taking any of these actions and will explain your rights, costs and options.

      Read more about actions HMRC can take to recover tax.

      Help and advice

      If you’re in Northern Ireland, you can get free debt advice from Advice NI.

      Making a complaint

      You cannot appeal against HM Revenue and Customs’ (HMRC) decision, but you can make a complaint if you’re unhappy about how you were treated.

      Also on this site
      Tax payment problems
      Help and support for the self-employed
      Primary parent
      Self Assessment
      Content category
      Taxes

      Source URL

      /content/if-you-cannot-pay-your-tax-bill-time

      Links

    • Stop being self-employed (video)

      Step-by-step video guide to stopping your Self Assessment online if you're self-employed

      You must tell HM Revenue and Customs (HMRC) if you’ve stopped trading as a sole trader or you’re ending or leaving a business partnership.

      You’ll also need to send a final tax return.

      Watch this short HMRC video explaining how to go online and stop Self Assessment if you're self-employed:

      Developed with
      HM Revenue & Customs
      Also on this site
      Stopping self-employment
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/stop-being-self-employed-video

      Links

    Self Assessment tax return deadlines

    In this guide:

    • Register for Self Assessment (video)

      How to register with HM Revenue & Customs for Self Assessment

      You will need to register for Self Assessment with HM Revenue & Customs (HMRC) if you have to send a tax return but didn't send one the previous year.

      Self Assessment registration process time

      You should note that it can take up to 20 working days to complete the registration process. You should take this into consideration to give yourself plenty of time to complete your Self Assessment return ahead of the 31 January deadline.

      Watch this short HMRC video explaining how to register your new business online with HMRC so that you can complete a Self Assessment return.

      HMRC also provide video guidance on how to register for Self Assessment if you are not self-employed.

      Developed with
      HM Revenue & Customs
      Also on this site
      Your Self Assessment return
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/register-self-assessment-video

      Links

    • Self Assessment tax return deadlines

      Important deadline dates for your Self Assessment tax returns.

      You must send your Self Assessment tax return and pay any tax you owe to HM Revenue & Customs (HMRC) on time. There are a number of deadlines for Self Assessment that you must keep in mind.

      The last tax year started on 6 April 2023 and ended on 5 April 2024.

      Self Assessment deadlines

      Self Assessment type Deadline
      Register for Self Assessment if you're self-employed or a sole trader, not self-employed or registering a partner or partnership 11:59pm on Friday 5 October 2024
      Paper tax returns 11:59pm on Thursday 31 October 2024
      Online tax returns 11:59pm on Friday 31 January 2025
      Pay the tax you owe 11:59pm on Friday 31 January 2025


      There is usually a second payment deadline of 31 July if you make advance payments towards your bill, known as payments on account.

      If you fail to meet the deadline you may have to pay a penalty. You can appeal against a penalty if you have a reasonable excuse.

      When the deadline is different

      Submit your online return by 30 December if you want HMRC to automatically collect tax you owe from your wages and pension. You must be eligible.

      HMRC must receive a paper tax return by 31 January if you're a trustee of a registered pension scheme or a non-resident company. You can't send a return online.

      HMRC might also email or write to you giving you a different deadline.

      Partnership returns if you have a company as a partner

      If your partnership’s accounting date is between 1 February and 5 April and one of your partners is a limited company, the deadline for:

      • online returns is 12 months from the accounting date
      • paper returns is 9 months from the accounting date

      2022 to 2023 tax year and earlier

      The Self Assessment deadline for these tax years has passed. Send your tax return or payment as soon as possible - you’ll have to pay a penalty.

      Developed with
      HM Revenue & Customs
      Actions
      Self Assessment tax return deadlines
      Also on this site
      Your Self Assessment return
      Help and support for the self-employed
      Content category
      Taxes

      Source URL

      /content/self-assessment-tax-return-deadlines

      Links

    • Complete your Self Assessment tax return (video)

      How to complete and submit your Self Assessment tax return online

      Watch this short HM Revenue & Customs (HMRC) video with simple guidance on how to fill in and submit your Self Assessment tax return. This video is particularly useful if you are completing your first Self Assessment tax return.

      Developed with
      HM Revenue & Customs
      Also on this site
      Your Self Assessment return
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/complete-your-self-assessment-tax-return-video

      Links

    • View your Self Assessment calculation (video)

      How to view your online tax calculation for Self Assessment

      When you use HM Revenue & Customs (HMRC) online tax return it automatically works out how much you have to pay by providing you with a result of your calculation.

      View this short HMRC video explaining how to view your Self Assessment calculation:

      Developed with
      HM Revenue & Customs
      Also on this site
      Your Self Assessment return
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/view-your-self-assessment-calculation-video

      Links

    • Pay your Self Assessment tax bill (video)

      How to pay your Self Assessment tax bill

      Your tax bill refers to your bill for income tax and any Class 4 National Insurance contributions you may owe to HM Revenue & Customs (HMRC).

      View this short HMRC video explaining how you pay your Self Assessment tax bill including various payment methods and payment deadline dates:

      Developed with
      HM Revenue & Customs
      Also on this site
      Making PAYE payments to HMRC
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/pay-your-self-assessment-tax-bill-video

      Links

    • How to appeal a Self Assessment late filing penalty (video)

      Watch this video to find out more about how to appeal against a Self Assessment late filing penalty

      You may face paying a penalty if you don't submit your Self Assessment tax return on time. You may also face a penalty if you don't pay the tax you owe to HM Revenue & Customs (HMRC) by the appropriate deadline.

      View this short HMRC video explaining the penalties that can be applied in the Self Assessment system and how you can appeal against a Self Assessment late filing penalty:

      Developed with
      HM Revenue & Customs
      Also on this site
      Self Assessment refunds, appeals and penalties
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/how-appeal-self-assessment-late-filing-penalty-video

      Links

    • Budget for your Self Assessment tax bill (video)

      How to budget and prepare for your Self Assessment tax bill

      View this short HM Revenue & Customs (HMRC) video explaining how you can budget and prepare ahead for your Self Assessment tax bill including how to use the Ready Reckoner tool for the self-employed and information on the budget payment plan:

      Developed with
      HM Revenue & Customs
      Actions
      Budget for your Self Assessment tax bill using the Ready Reckoner
      Budget payment plan
      Also on this site
      Your tax bill and Self Assessment
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/budget-your-self-assessment-tax-bill-video

      Links

    • Expenses if you’re self-employed (video)

      Expenses you can claim if you’re self-employed and listing these in your tax return

      If you are self-employed you may need to understand pre-trading expenses, day to day revenue expenses, capital allowances and using flat rates or simplified expenses. Access the HM Revenue & Customs (HMRC) self-employed business expenses e-learning tool.

      You can also view this short HM Revenue & Customs (HMRC) video explaining expenses you can claim if you're self-employed and how to account for these in your Self Assessment tax return:

      Developed with
      HM Revenue & Customs
      Actions
      Self-employed business expenses (e-learning)
      Also on this site
      Expenses and benefits
      Help and support for the self-employed
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/expenses-if-youre-self-employed-video

      Links

    • If you cannot pay your tax bill on time

      You must arrange to pay your tax bill with HM Revenue and Customs (HMRC) if you either miss a payment or know you cannot pay on time

      Contact HM Revenue and Customs (HMRC) as soon as possible if you:

      • have missed a tax deadline
      • know you will not be able to pay a tax bill on time

      If you can pay your tax bill

      If you are able to pay your tax bill in full, you should do so as soon as possible. This will stop more penalty charges and interest being added to your tax bill.

      If you cannot pay your tax bill in full

      Contact HMRC to discuss support available.

      HMRC may suggest you pay what you owe in instalments. This is called a Time to Pay arrangement.

      Pay what you owe in instalments (Time to Pay)

      How you contact HM Revenue and Customs (HMRC) to make a Time to Pay arrangement depends on what your tax bill is for.

      If you cannot pay a Self Assessment tax bill

      You can make your own Time to Pay arrangement using your Government Gateway account, if you:

      • have filed your latest tax return
      • owe less than £30,000
      • are within 60 days of the payment deadline
      • plan to pay your debt off within the next 12 months or less

      If you cannot make your own Time to Pay arrangement online

      Call the Self Assessment helpline if you cannot make your own Time to Pay Arrangement online, for example you owe more than £30,000 or need longer to pay.

      Self Assessment Payment Helpline
      Telephone: 0300 200 3822
      Monday to Friday, 8am to 6pm (excluding public holidays)

      Find out about call charges.

      If you cannot pay another type of tax

      If you or your company has got a letter or a text message about unpaid tax, then use the contact details in it to ask about a Time to Pay arrangement.

      If you’ve not had any contact from HMRC then call the Payment Support Service.

      Payment Support Service
      Telephone: 0300 200 3835
      Monday to Friday, 8am to 6pm (excluding public holidays)

      Find out about call charges

      What you’ll need to make a Time to Pay arrangement

      When you set up a Time to Pay arrangement you’ll need:

      • the relevant reference number for the tax you cannot pay, such as your unique tax reference number
      • your VAT registration number if you’re a business
      • your bank account details
      • details of any previous payments you’ve missed

      HMRC will ask you:

      • how much you can repay each month
      • if you can pay in full
      • if there are other taxes you need to pay
      • how much money you earn
      • what you usually spend (including bills and entertainment) each month
      • what savings or investments you have

      If you have savings or assets, HMRC will expect you to use these to reduce your debt as much as possible.

      If you’ve received independent debt advice, for example from Citizens Advice, you may have a ‘Standard Financial Statement’. HMRC will accept this as evidence of what you earn and spend each month.

      If your company is in tax debt

      HMRC will discuss your company’s finances with you.

      They’ll ask you to make a verbal proposal, explaining how you’ll pay your tax bill as quickly as you can. An adviser will ask questions about your proposal to make sure it is realistic and affordable for you.

      You must reduce your debt as much as possible before entering into a Time to Pay arrangement. You can do this by releasing assets like stock, vehicles and shares.

      HMRC may ask company directors to:

      • put personal funds into the business
      • accept lending
      • extend credit

      How HMRC works out your payments

      The amount you’ll be asked to pay each month is based on the money you have left after you pay any rent, food or utility bills and fixed outgoings you have, like subscriptions.

      You’ll usually be asked to pay around half of what you have left over each month towards the tax you owe.

      If you get a pension HMRC will count that as income, but will not count the amount in your pension pot as savings.

      You can also agree to pay more if you want. Paying your debt quicker means you’ll pay less in total, as interest is added to your bill each month.

      How long your Time to Pay arrangement lasts

      There is no time limit on how long a Time to Pay arrangement can last. How long yours will last depends on how much you owe and what you can afford to pay each month.

      Contact HMRC if anything changes that you think affects your Time to Pay arrangement. The arrangement can be made longer or shorter.

      If HMRC finds out that something has changed in your circumstances, they may contact you to discuss changing your repayments.

      When you cannot pay in instalments

      You cannot set up a Time to Pay arrangement if HMRC do not believe you will follow a repayment plan. For example, if you have not paid taxes in the past.

      If HMRC cannot agree a payment plan with you, they’ll ask you to pay the amount you owe in full. They can collect unpaid tax directly if you refuse to pay.

      After a Time to Pay arrangement has been agreed

      If you miss a payment, HMRC will contact you to find out why. Where possible, HMRC will restore the payment arrangement or renegotiate it with you.

      If you cannot pay another tax bill, contact HMRC. You may be able to include the new tax bill in your existing Time to Pay arrangement.

      If you do not contact HMRC or refuse to pay

      HM Revenue and Customs (HMRC) will always try to contact you if you miss a tax payment. This can include sending you letters, texts and visiting you at home or at work.

      If you do not get in contact with HMRC or cannot agree an instalment plan then HMRC may:

      • ask a debt collection agency to collect the money
      • collect what you owe directly from your wages or any monthly pension payments you get
      • take things you own and sell them (if you live in England, Wales or Northern Ireland)
      • take money directly from your bank account or building society savings (if you live in England, Wales or Northern Ireland)
      • take you to court
      • make you bankrupt
      • close down your company if the tax is a business tax

      Any costs, like auction fees, are normally added to your debt. HMRC will tell you before taking any of these actions and will explain your rights, costs and options.

      Read more about actions HMRC can take to recover tax.

      Help and advice

      If you’re in Northern Ireland, you can get free debt advice from Advice NI.

      Making a complaint

      You cannot appeal against HM Revenue and Customs’ (HMRC) decision, but you can make a complaint if you’re unhappy about how you were treated.

      Also on this site
      Tax payment problems
      Help and support for the self-employed
      Primary parent
      Self Assessment
      Content category
      Taxes

      Source URL

      /content/if-you-cannot-pay-your-tax-bill-time

      Links

    • Stop being self-employed (video)

      Step-by-step video guide to stopping your Self Assessment online if you're self-employed

      You must tell HM Revenue and Customs (HMRC) if you’ve stopped trading as a sole trader or you’re ending or leaving a business partnership.

      You’ll also need to send a final tax return.

      Watch this short HMRC video explaining how to go online and stop Self Assessment if you're self-employed:

      Developed with
      HM Revenue & Customs
      Also on this site
      Stopping self-employment
      Content category
      Taxes
      Select subtype
      Video

      Source URL

      /content/stop-being-self-employed-video

      Links

    Complete your Self Assessment tax return (video)

    In this guide:

    • Register for Self Assessment (video)

      How to register with HM Revenue & Customs for Self Assessment

      You will need to register for Self Assessment with HM Revenue & Customs (HMRC) if you have to send a tax return but didn't send one the previous year.

      Self Assessment registration process time

      You should note that it can take up to 20 working days to complete the registration process. You should take this into consideration to give yourself plenty of time to complete your Self Assessment return ahead of the 31 January deadline.

      Watch this short HMRC video explaining how to register your new business online with HMRC so that you can complete a Self Assessment return.

      HMRC also provide video guidance on how to register for Self Assessment if you are not self-employed.

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    • Self Assessment tax return deadlines

      Important deadline dates for your Self Assessment tax returns.

      You must send your Self Assessment tax return and pay any tax you owe to HM Revenue & Customs (HMRC) on time. There are a number of deadlines for Self Assessment that you must keep in mind.

      The last tax year started on 6 April 2023 and ended on 5 April 2024.

      Self Assessment deadlines

      Self Assessment type Deadline
      Register for Self Assessment if you're self-employed or a sole trader, not self-employed or registering a partner or partnership 11:59pm on Friday 5 October 2024
      Paper tax returns 11:59pm on Thursday 31 October 2024
      Online tax returns 11:59pm on Friday 31 January 2025
      Pay the tax you owe 11:59pm on Friday 31 January 2025


      There is usually a second payment deadline of 31 July if you make advance payments towards your bill, known as payments on account.

      If you fail to meet the deadline you may have to pay a penalty. You can appeal against a penalty if you have a reasonable excuse.

      When the deadline is different

      Submit your online return by 30 December if you want HMRC to automatically collect tax you owe from your wages and pension. You must be eligible.

      HMRC must receive a paper tax return by 31 January if you're a trustee of a registered pension scheme or a non-resident company. You can't send a return online.

      HMRC might also email or write to you giving you a different deadline.

      Partnership returns if you have a company as a partner

      If your partnership’s accounting date is between 1 February and 5 April and one of your partners is a limited company, the deadline for:

      • online returns is 12 months from the accounting date
      • paper returns is 9 months from the accounting date

      2022 to 2023 tax year and earlier

      The Self Assessment deadline for these tax years has passed. Send your tax return or payment as soon as possible - you’ll have to pay a penalty.

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    • Complete your Self Assessment tax return (video)

      How to complete and submit your Self Assessment tax return online

      Watch this short HM Revenue & Customs (HMRC) video with simple guidance on how to fill in and submit your Self Assessment tax return. This video is particularly useful if you are completing your first Self Assessment tax return.

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    • View your Self Assessment calculation (video)

      How to view your online tax calculation for Self Assessment

      When you use HM Revenue & Customs (HMRC) online tax return it automatically works out how much you have to pay by providing you with a result of your calculation.

      View this short HMRC video explaining how to view your Self Assessment calculation:

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    • Pay your Self Assessment tax bill (video)

      How to pay your Self Assessment tax bill

      Your tax bill refers to your bill for income tax and any Class 4 National Insurance contributions you may owe to HM Revenue & Customs (HMRC).

      View this short HMRC video explaining how you pay your Self Assessment tax bill including various payment methods and payment deadline dates:

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    • How to appeal a Self Assessment late filing penalty (video)

      Watch this video to find out more about how to appeal against a Self Assessment late filing penalty

      You may face paying a penalty if you don't submit your Self Assessment tax return on time. You may also face a penalty if you don't pay the tax you owe to HM Revenue & Customs (HMRC) by the appropriate deadline.

      View this short HMRC video explaining the penalties that can be applied in the Self Assessment system and how you can appeal against a Self Assessment late filing penalty:

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    • Budget for your Self Assessment tax bill (video)

      How to budget and prepare for your Self Assessment tax bill

      View this short HM Revenue & Customs (HMRC) video explaining how you can budget and prepare ahead for your Self Assessment tax bill including how to use the Ready Reckoner tool for the self-employed and information on the budget payment plan:

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    • Expenses if you’re self-employed (video)

      Expenses you can claim if you’re self-employed and listing these in your tax return

      If you are self-employed you may need to understand pre-trading expenses, day to day revenue expenses, capital allowances and using flat rates or simplified expenses. Access the HM Revenue & Customs (HMRC) self-employed business expenses e-learning tool.

      You can also view this short HM Revenue & Customs (HMRC) video explaining expenses you can claim if you're self-employed and how to account for these in your Self Assessment tax return:

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    • If you cannot pay your tax bill on time

      You must arrange to pay your tax bill with HM Revenue and Customs (HMRC) if you either miss a payment or know you cannot pay on time

      Contact HM Revenue and Customs (HMRC) as soon as possible if you:

      • have missed a tax deadline
      • know you will not be able to pay a tax bill on time

      If you can pay your tax bill

      If you are able to pay your tax bill in full, you should do so as soon as possible. This will stop more penalty charges and interest being added to your tax bill.

      If you cannot pay your tax bill in full

      Contact HMRC to discuss support available.

      HMRC may suggest you pay what you owe in instalments. This is called a Time to Pay arrangement.

      Pay what you owe in instalments (Time to Pay)

      How you contact HM Revenue and Customs (HMRC) to make a Time to Pay arrangement depends on what your tax bill is for.

      If you cannot pay a Self Assessment tax bill

      You can make your own Time to Pay arrangement using your Government Gateway account, if you:

      • have filed your latest tax return
      • owe less than £30,000
      • are within 60 days of the payment deadline
      • plan to pay your debt off within the next 12 months or less

      If you cannot make your own Time to Pay arrangement online

      Call the Self Assessment helpline if you cannot make your own Time to Pay Arrangement online, for example you owe more than £30,000 or need longer to pay.

      Self Assessment Payment Helpline
      Telephone: 0300 200 3822
      Monday to Friday, 8am to 6pm (excluding public holidays)

      Find out about call charges.

      If you cannot pay another type of tax

      If you or your company has got a letter or a text message about unpaid tax, then use the contact details in it to ask about a Time to Pay arrangement.

      If you’ve not had any contact from HMRC then call the Payment Support Service.

      Payment Support Service
      Telephone: 0300 200 3835
      Monday to Friday, 8am to 6pm (excluding public holidays)

      Find out about call charges

      What you’ll need to make a Time to Pay arrangement

      When you set up a Time to Pay arrangement you’ll need:

      • the relevant reference number for the tax you cannot pay, such as your unique tax reference number
      • your VAT registration number if you’re a business
      • your bank account details
      • details of any previous payments you’ve missed

      HMRC will ask you:

      • how much you can repay each month
      • if you can pay in full
      • if there are other taxes you need to pay
      • how much money you earn
      • what you usually spend (including bills and entertainment) each month
      • what savings or investments you have

      If you have savings or assets, HMRC will expect you to use these to reduce your debt as much as possible.

      If you’ve received independent debt advice, for example from Citizens Advice, you may have a ‘Standard Financial Statement’. HMRC will accept this as evidence of what you earn and spend each month.

      If your company is in tax debt

      HMRC will discuss your company’s finances with you.

      They’ll ask you to make a verbal proposal, explaining how you’ll pay your tax bill as quickly as you can. An adviser will ask questions about your proposal to make sure it is realistic and affordable for you.

      You must reduce your debt as much as possible before entering into a Time to Pay arrangement. You can do this by releasing assets like stock, vehicles and shares.

      HMRC may ask company directors to:

      • put personal funds into the business
      • accept lending
      • extend credit

      How HMRC works out your payments

      The amount you’ll be asked to pay each month is based on the money you have left after you pay any rent, food or utility bills and fixed outgoings you have, like subscriptions.

      You’ll usually be asked to pay around half of what you have left over each month towards the tax you owe.

      If you get a pension HMRC will count that as income, but will not count the amount in your pension pot as savings.

      You can also agree to pay more if you want. Paying your debt quicker means you’ll pay less in total, as interest is added to your bill each month.

      How long your Time to Pay arrangement lasts

      There is no time limit on how long a Time to Pay arrangement can last. How long yours will last depends on how much you owe and what you can afford to pay each month.

      Contact HMRC if anything changes that you think affects your Time to Pay arrangement. The arrangement can be made longer or shorter.

      If HMRC finds out that something has changed in your circumstances, they may contact you to discuss changing your repayments.

      When you cannot pay in instalments

      You cannot set up a Time to Pay arrangement if HMRC do not believe you will follow a repayment plan. For example, if you have not paid taxes in the past.

      If HMRC cannot agree a payment plan with you, they’ll ask you to pay the amount you owe in full. They can collect unpaid tax directly if you refuse to pay.

      After a Time to Pay arrangement has been agreed

      If you miss a payment, HMRC will contact you to find out why. Where possible, HMRC will restore the payment arrangement or renegotiate it with you.

      If you cannot pay another tax bill, contact HMRC. You may be able to include the new tax bill in your existing Time to Pay arrangement.

      If you do not contact HMRC or refuse to pay

      HM Revenue and Customs (HMRC) will always try to contact you if you miss a tax payment. This can include sending you letters, texts and visiting you at home or at work.

      If you do not get in contact with HMRC or cannot agree an instalment plan then HMRC may:

      • ask a debt collection agency to collect the money
      • collect what you owe directly from your wages or any monthly pension payments you get
      • take things you own and sell them (if you live in England, Wales or Northern Ireland)
      • take money directly from your bank account or building society savings (if you live in England, Wales or Northern Ireland)
      • take you to court
      • make you bankrupt
      • close down your company if the tax is a business tax

      Any costs, like auction fees, are normally added to your debt. HMRC will tell you before taking any of these actions and will explain your rights, costs and options.

      Read more about actions HMRC can take to recover tax.

      Help and advice

      If you’re in Northern Ireland, you can get free debt advice from Advice NI.

      Making a complaint

      You cannot appeal against HM Revenue and Customs’ (HMRC) decision, but you can make a complaint if you’re unhappy about how you were treated.

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    • Stop being self-employed (video)

      Step-by-step video guide to stopping your Self Assessment online if you're self-employed

      You must tell HM Revenue and Customs (HMRC) if you’ve stopped trading as a sole trader or you’re ending or leaving a business partnership.

      You’ll also need to send a final tax return.

      Watch this short HMRC video explaining how to go online and stop Self Assessment if you're self-employed:

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