The deadline for registering for Self Assessment is 5 October after the end of the tax year; anyone who needs to register for 2018/19 has less than a week left and this includes those who need to report and pay the loan charge.
There is an obligation to notify HMRC of chargeability to income tax and capital gains tax within 6 months of the end of the tax year.
You have an obligation to Notify HMRC of chargeability to tax if you have, during the tax year:
- Made a capital gain not covered by exemptions or reliefs and the proceeds exceed £48,000.
- Employment income that is not taxed under PAYE.
- Dividend income and further tax to pay on that income.
- Any other untaxed income or are liable to tax at higher rates, including where you are subject to the High Income Child Benefit Charge.
If you fail to notify HMRC of your chargeability to tax and have unpaid tax on 1 February 2020, penalties will be due unless you have Reasonable excuse for the failure. You can register with HMRC for self-assessment here.
Self Assessment and the Loan charge
For 2018/19 only, individuals who had outstanding loans from Disguised remuneration schemes on 5 April 2019:
- who are not in the process of settling with HMRC and
- who are not already registered for self-assessment
must register by 5 October and
- Submit a self-assessment return by 31 January 2020
- Declare their loans subject to the charge and
- Pay the tax due unless it has already been deducted in full by their employer under PAYE.
The requirement to include these loans on the self-assessment return is in addition to the obligation to report details of loans to HMRC by 1 October 2019.
Links to our useful guides
Penalties; failure to notify
A tax penalty applies when a person fails to notify HMRC that they are chargeable to tax.
Do I have to file a tax return?
When do I have to file a self-assessment return? A guide setting out when you should file a self-assessment return if you are not a director.
Do I need to file a tax return (directors)
Do you need to file a Self Assessment tax return? What if you are a director? Can HMRC make directors file tax returns?
Disguised remuneration loan charge (subscriber guide)
What is disguised remuneration? What is the loan charge? When does the loan charge apply? Will the loan charge affect me?