Hello Mums, I cannot believe how fast April has flown by. Between half term, Easter weekend and the crazy intake of tax returns I received I don’t think my feet have touched the ground.

Happy New Year

As you most probably know April 6th is the start of the new tax year.

 
If you are self-employed or are required to prepare a self-assessment for various other reasons you may have received by now a HMRC notice to complete a tax return. If you haven’t don’t panic, it will turn up sooner rather than later.

Important Filing Dates

Your 2016/17 tax return must reach HMRC and be paid in full by 31st January 2018 (if filing electronically). This deadline is brought forward to 31st October 2017 if you still like to fill out the form and send it via post.

 


Don’t forget if you miss this deadline you will have to pay an initial penalty of £100. The later you send in your return, the more penalties you are likely to pay.

 
And, of course if you are in receipt of tax credits the renewal deadline is 31 July 2017. I would always advise completing your tax return prior to this date. This means you can give HMRC actual figures instead of estimates and avoid any complications for over payment scenarios. (I had one many years ago when I was made redundant and it was a real bite in the bum).

Tax Thresholds for 2017/18

The most important question to anyone who is self-employed I’m guessing is ‘How much can I earn before I pay any tax?’ The answer for the 2017/18 tax year is as follows:

 


Personal allowance – The standard tax free personal allowance for 2017/18 is £11,500*. Any income above this up to £45,000 will be taxable at 20%.

 
National insurance class 2 – If your profits are above £6,025 class 2 NI will be payable at a flat rate of £2.85 per week. Don’t forget this is the last tax year you are required to make class 2 NI contributions!!

 
National insurance class 4 – If your profits are above £8,164 class 4 NI will be payable on profits above this rate at 9% up to £45,000 where it will then drop down to 2% for profits above the second rate.

 

*Please note there are various circumstances that might impact your individual personal allowance such as marriage allowance, income levels, etc.

 

 

If you find yourself in a bit of a panic when it comes to self-assessment. STOP, take a deep breath and get in touch. Here at Mums Tax Break HQ I understand how hard it can be juggling everything and that is why I am here to help. As crazy as it seems I actually like working with cashbooks, spreadsheets and tax returns.