Important tax information for plumbers and heating engineers

There’s less than 100 days until the Self Assessment deadline on 31 January 2025.

The deadline will be here before you know it, so mark the date on your calendar and follow this guide to avoid last-minute stress or penalties.

5 top tips

• Untaxed income: If you received any untaxed income in 2023-2024 then use the check if you need to do a tax return tool on GOV.UK to see if you need to submit one. If you do, and if you’ve never completed a tax return before, then you’ll need to act quickly and register for Self Assessment. Once you’ve registered you’ll get a Unique Taxpayer Reference which is needed for your tax return.

• Subcontractors: Ensure you’re registered under the Construction Industry Scheme (CIS). The scheme requires contractors to deduct money from your payments and pass it on to HMRC. Subcontractors do not have to register, but deductions are taken from their payments at a higher rate if they’re not registered. There’s also a YouTube video to explain invoicing for materials for CIS contractors.

• Record keeping: HMRC requires you to keep records, such details of your income and expenses, including invoices, receipts and bank statements. It also makes completing your tax return and calculating taxable income easier and more accurate.

• Claim expenses: don’t forget to claim allowable expenses such as tools, equipment, travel costs and protective clothing which can help reduce your tax bill.

• Avoid penalties: don’t miss the tax return and payment deadline of 31 January 2025. If you need help between now and the deadline then make full use of HMRC online services, information on UK and YouTube so you can get it done on time.

Tax bills

Doing your tax return early means you’ll find out how much you owe (if anything) and can budget ahead of the payment deadline of 31 January 2025.

When you get your tax bill or statement, you might have questions. HMRC’s helpline is very busy in between November and January so before you pick up the phone, it’s worth watching HMRC’s YouTube video on Understanding your tax statement and skipping to the section that answers your question or see the advice on GOV.UK.

By following this advice and not leaving it to the last minute, you can have a smooth and hassle-free tax season.