Self-Assessment-for-beginners
If you have just started a side hustle, for example, your own YouTube channel or designing and selling your own T-Shirts. Maybe you've decided to rent out an apartment. Whatever it may be, you're likely to have questions as to whether there are tax implic
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What is a self assessment?
Do I fall within the categories?
For 23/24 tax year, if your 'side hustle' income is more than £1000, then you will need to register with HMRC and file a self assessment tax return. The deadline for this is 6 months after the tax year that you earned the additional income.
An example to illustrate this, if you earned £4000 from your YouTube channel for the 22/23 tax year (between 6th of April 22' - 5th of April 23), your deadline to register with HMRC is 5th of October 23' (paper filing) or 31st January 24' (online filing).
What about my personal allowance?
Every person has £12,570 Personal Allowance which they can receive free of tax each year. However, you must know, even if your side-hustle income does not exceed this threshold, but is above the £1000 minimum, then you must still register with HMRC. The additional income has to be reported but you will not be taxed.
Where do I start?
You must register for a self assessment tax return, this can be done by visiting the HMRC website or by calling the helpline. Once you are registered, you will receive a unique taxpayer reference (UTR), a number assigned to you for tax purposes. Then, be sure to round up all information related to your income such as your payslips, any invoices or expenses. Your expenses will include things related to your self-employment, such as subscription or equipment costs.
When do I have to submit by?
The deadline for submitting your self assessment tax return and paying any tax owed is January 31st following the end of the tax year. Once you have submitted, you'll be informed of the amount you owe (if any). It is essential that you keep accurate records of your income/expenses because HRMC may request to see them.
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