Forgot to Register for Self Assessment: What Happens Next?
If you are a sole trader in the UK and have forgotten to register for Self Assessment, it is important to understand the steps you need to take and the possible consequences. Self Assessment is HM Revenue and Customs’ (HMRC) system for collecting Income Tax from people who have income that is not taxed at source, such as self-employed earnings.
When Should You Have Registered?
You must register for Self Assessment by 5 October following the end of the tax year in which you started trading. For example, if you began trading in the 2023/24 tax year (which ends on 5 April 2024), you need to register by 5 October 2024. If you miss this deadline, HMRC can charge you a penalty.
What Happens If You Register Late?
If you realise you have missed the registration deadline, you should register as soon as possible. HMRC requires you to notify them that you need to complete a tax return. The later you register, the more likely you are to face a penalty.
- Penalties: HMRC can impose a £100 penalty if you register late, even if you have no tax to pay. This penalty is separate from any interest or fines you might face for late filing or late payment of tax.
- Filing your return: After registering, you will need to complete your Self Assessment tax return for the relevant tax year. The deadline for submitting the return online is 31 January following the end of the tax year.
- Paying tax: Any tax due must also be paid by 31 January. If payment is late, HMRC may charge interest and additional penalties.
Example
Suppose you started trading in February 2024 but only registered for Self Assessment in December 2024. You missed the 5 October registration deadline. You will likely face a £100 late registration penalty. You must then complete your tax return for 2023/24 by 31 January 2025 and pay any tax due by that date to avoid further penalties.
What If You Don’t Register at All?
HMRC may contact you if they believe you should be registered for Self Assessment but have not done so. Ignoring this can lead to penalties and enforcement action. It is best to register promptly once you realise the oversight.
Keeping Records
When you register and prepare your return, keep accurate records such as receipts and bank statements. These will help you complete your tax return correctly and support your figures if HMRC asks for evidence.
Where to Confirm Details
For the most accurate and personalised information, check HMRC’s official guidance on Self Assessment registration and deadlines. This will help you understand your responsibilities and any exceptions that might apply to your situation.
Official reference: https://www.gov.uk/self-assessment-tax-returns. Always check the latest official guidance. Related forms: Browse our form category.
Important: This article provides general information. Government rules, forms and procedures can change, and this article may not reflect the latest updates. Check current GOV.UK guidance or the relevant authority before relying on it. ITG & Co. is independent and is not affiliated with a government department.