No, you won’t need to complete a self-assessment tax return until 31st January 2019 as you started your business and were self-employed during the tax year 6th April 2017 to 5th April 2018.
You need to register for Self Assessment as soon as your business starts and no later than 5th October in your business’ second tax year to avoid fines.
Registration can be completed online with HM Revenue & Customs and once you have registered you will receive a 10-digit Unique Taxpayer Reference (UTR) and an activation code to enable you to access your online services.
Any tax due will also be payable by 31st January. If the tax due is above £1,000, ‘payments on account’ may also be due. These are instalments towards next year’s tax bill and are in addition to paying this year’s tax bill. In your first year, payments on account can be unexpected nasty surprise so make sure you put aside enough for your tax liability.
It can be a confusing time when you start your business and using an accountant can help ease the situation offering advice regarding cashflow and looking after your tax affairs.
By Jo Nockels
Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.