As the 31st January 2025 tax return deadline approaches, it’s crucial for UK self-employed individuals, freelancers, and small business owners to ensure they are fully prepared. One of the most common and costly mistakes is assuming you’re already registered for Self-Assessment with HMRC, only to find out too late that you’re not.
At Skyrock Accountants, we’ve seen many clients who started trading without consulting an accountant, assuming they could register for Self-Assessment whenever they are ready to file their tax return. Unfortunately, these clients often come to us at the last minute, only to discover that they don’t have a UTR (Unique Taxpayer Reference). Without this crucial 10-digit number, we can’t file their tax return, potentially, resulting in missed deadlines and significant fines.
Why Having a UTR Number Is Essential
Your UTR number is your unique tax reference, used by HMRC to identify your tax account. You can usually find it on the first letter HMRC sent you or any other correspondence from HMRC. If you can’t locate your UTR, it may mean you’ve either lost it or never registered for Self-Assessment.
Consequences of Late Registration
Missing the 31st January deadline can result in immediate fines of £100. After three months, you could face additional penalties of £10 per day, up to a maximum of 90 days, plus 5% of any tax due—or £300, whichever is greater. Accumulating fines can easily exceed £1000s, all because of a simple oversight.
How to Check If You’re Registered
If you’re unsure whether you’ve registered for Self-Assessment, now is the time to check. Log in to your personal tax account, set one up online, or use the HMRC app to find your UTR number. If you don’t have one, you’ll need to register for Self -Assessment immediately.
How to Register for Self-Assessment
Registering for Self Assessment is straightforward, but it’s important to do it as soon as possible to avoid penalties. Here’s how you can register ( or Contact us to do it for you ) :
1. Create a Government Gateway Account: If you haven’t already, create a Government Gateway account on the HMRC website. This account will provide access to HMRC’s online services.
2. Complete the Registration Form: Go to the HMRC website and complete the online Self Assessment registration form. Make sure you have your National Insurance number and personal details at hand.
3. Receive Your UTR Number: After registering, HMRC will send your UTR number by post. This can take up to 10 working days (or 21 days if you’re abroad), so it’s essential to register well in advance of the deadline.
4. Activate Your UTR: Once you receive your UTR, you’ll need to activate it by setting up your Self Assessment online account. Follow the instructions provided in the letter from HMRC.
5. File Your Tax Return: With your UTR number, you can now complete and submit your Self Assessment tax return online. Make sure to do this before the 31st January deadline to avoid any fines.
Don’t Wait Until the Last Minute
Avoid the stress and financial penalties by getting started on your tax return today. If you need help, our expert team at Skyrock Accountants is here to assist you. We offer tax return services starting from just £150.
