Congratulations on being a part of the latest Antler cohort!
Whether you receive funding or not, it is exciting to be part of the ever growing Antler network! As you already know, you are going to be very busy building your business. But, what you might not know is the Antler UK grant is income, and so may be subject to tax.
If you're a tax resident in the UK, you will need to tell HMRC about this.
HMRC allows you to earn £1,000 a year before you have to declare your income to them. This is your 'tax free allowance'. As Antler's grant payments are way over this, you need to submit a tax return
You are likely to have your personal details and an overview of your earnings. But most people don't have their UTR number.
A UTR is a 10 digit number that you get from HMRC after you register to do a tax return. It's like your National Insurance number, but it's used for your tax return.
You can register for a UTR with HMRC or do it for free with the Earnr app.
Most UTR registrations take 10 business days, but they can take up to 10 weeks - so make sure you do this as soon as possible!
I already have a UTR, what do I do next?
You'll need to submit your tax return to HMRC. A tax return, or Self Assessment, is an overview of your earnings for the year. This includes your Antler grants and any income you receive from employment. Examples include; letting out a room, dividends, interest, or any other capital gains you might have made.
You can submit your tax return with HMRC, an accountant, or through an app like Earnr. HMRC isn't the most user friendly, so using an app like Earnr will speed up the process and leave you a little less confused!
Your tax return is due each year by the 31st January, and covers all your earnings from April to April (the tax year). This means that you have over 9 months to prepare your tax return each year.
If you earn less than the tax threshold in the UK, then you don't need to pay any income tax or National Insurance.
If you do earn above this threshold, then you will be taxed over your income. For the last tax year (2020/21), the thresholds you want to keep in mind are:
You may still want to voluntarily pay National Insurance to save up for your state pension and state benefits. This includes things like maternity leave and statutory sick pay.
HMRC doesn't make things very easy to understand, especially if you're busy building a new business. Using an app like Earnr can make it easier to stay on top of your income and tax return before the deadline.
Just download the app from the IOS app store and get everything sorted!
This blog post has been prepared by Earnr and not by Antler. The content in this blog post is of a general nature, for information purposes