Tax Deadlines For Self-Employed Actors
by Breckman & Company, posted 19 August 2015
Registering for self-assessment
The tax year runs to 5 April. If you begin your self-employment in the year to 5 April 2016 then you will need to complete a 2016 tax return.
The latest date for registration for a 2016 tax return will be 5 October 2016 (so you have up to 6 months after the tax year-end to register). You can ask an accountant to assist with registration, or you can register yourself online using form SA1.
Once registered you will be issued with a 10 digit UTR (unique taxpayers reference number).
There is no penalty for late registration, although if your registration isn’t processed in time for you to submit your tax return by the deadline then you will be subject to a fine.
Tax return filing deadline
There are two ways of completing and submitting your tax return. The first is to complete a ‘paper’ return (i.e. request a paper copy and complete it by hand), and then post it. The second is to complete it on-line.
The deadline for a paper return is 31 October following the tax year end (a 2016 tax return will need to be filed by 31 October 2016).
The deadline for on-line filing is 31 January following the tax year end (a 2016 return will need to be filed by 31 January 2017).
Automatic penalties will be incurred even if filed a day late.
Tax is payable every 31 January and 31 July and will include any class II and class IV National Insurance due. There are no fixed penalties for late payment, although interest and surcharges will be incurred.
If you file your tax return a day late there is a penalty to pay of £100.
If you’re more than 3 months late in filing then you can be charged a penalty of £10 per day, every day, for up to 90 days (maximum penalty £900).
If the return is still outstanding after 6 months then a £300 fine or 5% of the tax due (whichever is greater) will be charged.
If your return is over 6 months late you will be looking at a minimum fine of £1,300. And the fines will continue until the return is filed.
If you pay you tax late you will be subject to surcharges. If you’re 30 days late you will be charged 5% of the tax due as a surcharge. A further surcharge of 5% is due on any tax outstanding 6 months after the due date. Interest is also due on late payments.
Plan ahead. Leave yourself plenty of time to register and to file your return. Don’t give yourself a last minute headache!
Save for your tax. Put aside a proportion of whatever you earn so that you don’t end up with an unexpected shock just after Christmas or as the summer holidays start!
If you decide to use an accountant to help prepare your accounts and file your return, we would recommend that you use someone who is qualified and registered with a professional body. We also think it a good idea to use someone who specialises in the arts and entertainment industry.
Breckman & Company have specialised in the arts and entertainment industry for over 50 years for both individuals and companies and have offices in London and Brighton.
For a free initial consultation, please e-mail [email protected] or call 020 7499 2292 (01273 929350 Brighton office)