Tax specialist warns gig economy workers to register for tax returns before looming October 5th deadline
Considering the fast-approaching self-employment registration deadline on October 5th, tax advice experts The Accountancy Solutions have warned gig economy workers who began trading in 2016/2017 to register for self-assessment if they haven’t already.
Failure to notify HMRC of new sources of income by the deadline can result in costly fines on top of the tax that is required by law to be paid, warns The Accountancy Solutions.
Mr Aatif Malik, Managing Director at The Accountancy Solutions, said: “The October 5th deadline is only a couple of days away so it really is vital that if newly self-employed people haven’t registered for self-assessment with HMRC they need to do so urgently.
“This affects any self-employed business that began trading during the previous tax year, which runs from April 6 2016 to April 5 2017. This also applies to what is called the ‘gig economy,’ which is filled by people carrying out irregular, short-term work or freelance work; these people are still classed as self-employed and still need to register to avoid being faced with hefty fines.
The gig economy is an area within the self-employed sector that includes jobs such as couriers, freelance IT workers and video producers who may do irregular or contract work. It is estimated that five million people in the UK currently work in the gig economy.
Many gig economy workers are unaware that they have to pay tax or national insurance on what they earn due to the irregular and nature of their work and level of income, however it is still necessary to complete a tax return with HMRC.
Indeed, this lack of awareness of the tax system can land unsuspecting gig economy workers with sudden fines, as even very irregular or ‘one off’ jobs are still classed as miscellaneous income and may still be taxable.
Mr Malik added: “Filling out a tax return can be an extremely long and complicated process, however it’s necessary that they’re filled out every year so tax can be collected properly.
“If there’s any self-employed or gig economy workers out there yet to fill out their forms or unsure of what to do, we urge them to contact us immediately so we can help individuals make the most of taxable allowances as well as ensuring their reports are sent to HMRC in time.”
The Accountancy Solutions offers swift and comprehensive tax return services used by many businesses in London and Birmingham where the company is based.
The company guarantee that in addition to having their tax returns completed on time, income will be summarised from all sources and losses will be treat correctly to ensure that only the right amount of tax is paid.
Many also use The Accountancy Solutions for the company’s guarantee to thoroughly check for allowable allowances that can save businesses money. The Accountancy Solutions will also claim refunds back from HMRC where tax has been overpaid, as HMRC doesn’t always automatically issue refunds and businesses may not be aware that they’re owed money.
For more information about the self-assessment tax return services offered by The Accountancy Solutions, along with the range of other tax and accountancy services the company offers, please visit https://theaccountancysolutions.com/ or call 01216297768 (Birmingham) or 02070784001 (London).