There’s still time to file self-assessment tax returns for 2020-21 before any penalties are charged – which would usually happen on 1st February. HMRC will not fine those who file by the end of February. So, why should I care?
If you’re looking to get a loan or mortgage, you want to show a healthy income.
Some creatives, even when earning good money, still view themselves as ‘just starting out’ or ‘enjoying a hobby’ when, actually, they are selling paintings to friends or DJing gigs at ‘Mate’s Rates’.
So, what’s stopping you from putting your additional income onto a mortgage application?
The best lenders will want solid evidence of earnings. They may ask to see bank statements, professional accounts or evidence of what you filed with HMRC.
In short, if you have income from the 2020-21 tax year, you still have time to sort it, without penalties, so that you\’re better placed to get on the property ladder.
For more details about when to treat your hobby as a business, or to declare your income to HMRC, be in touch and check us out.
If you’re a creative, we look forward to helping you grow.
Email me, email@example.com
Connect with me, https://www.linkedin.com/in/jonathancohenaccountant/
Please check out my articles posted through The Professional Circle, https://ukprofessional.co.uk/2022/01/07/now-we-are-in-business/