Self Assessment Deadline Looming
I would like to start off by wishing everyone a Happy New Year for 2021! The last year was challenging for us all for obvious reasons so here is hoping for a good 2021!
With the new year dawning on us, it is that time of year again when we are less than a month away from the self assessment tax return deadline!
Year on year, the amount of individuals that leave their tax returns to the very last minute is quote staggering to be honest, especially given the fact that we have all had since the 6th of April 2020 to get prepared and submit the returns into HMRC. For the tax year 2018/19 nearly 700000 people filed their tax returns on the very last day and of this figure over 26000 filed in the last hour!
There was calls from many tax and accounting professional bodies to get HMRC to delay the deadline for self assessment. However, this request was denied so contrary to what information you may have heard the deadline still remains the same.
One thing we must remember is that just because we file the returns earlier does not mean we have to pay any tax liability earlier. We still have up to the 31st of January 2021 to pay off any tax liability our submitted returns calculated there was to pay. By submitting the return earlier gives you more time to save up for any shortfall that may occur in the money you have to pay off your tax liability.
Another thing to factor in regarding payment is that you will still be expected to make your first payment on account for the tax year 2020/21 by the end of this month as well! This is another benefit of submitting your return in earlier as it also gives you more time to save up this money as well should you need the time.
Due to the Covid pandemic, HMRC allowed the deferment of the second payment on account due in July 2020 for the tax year 2019/20. If you took advantage of this deferral then you also need to factor in that you will owe this money as well towards your tax liability for the year 2019/20.
It is also worth remembering that by leaving your return to the last minute there is a higher chance there will be errors in the return as it will have been rushed to meet the deadline. Any errors could end up being costly as they could lead to a higher tax liability or even worse, a tax investigation from HMRC which is stress we could all do without at this time in our lives.
Lastly, it is worth mentioning that by missing the deadline you will be subjected to a £100 fine for any return that is up to 3 months late, with further penalties due if the return submitted later than 3 months. These fines can be avoided by being prepared.
Using a firm like Tax Tyne can ensure that your returns are prepared and submitted to HMRC on time. We will take care of working out the details of your return with you and ensure that we save you money where we can legally.
To see how we can help you give us a call for a free no obligation consultation on 0191 5111217 or email us at firstname.lastname@example.org