Last month, we reminded you about the 31 January deadline for filing Self Assessment tax returns and explained what you need to do. Now, with less than two weeks to go, it is essential you check with your tax advisor or accountant that your return has been filed correctly for the tax year that ended on 5 April 2020. If you leave it until several days before the deadline, they may not have enough time to do the work, and if you are late in submitting you may face a fine, typically starting at £100. If you are also then late paying, interest is charged on the amount due.
Penalties can be calculated using the HMRC’s own calculator at: Estimate your penalty for late Self Assessment tax returns and payments
Obviously, for many businesses 2020 has been an extremely tough year. In light of this, the Government is allowing eligible businesses to set up a payment plan that will allow them to pay the Self-Assessment tax they owe in monthly instalments. This includes any deferred ‘payments on account’ that were due in July 2020, if you did not pay them at the time. You are eligible if:
- You owe £30,000 or less
- You do not have any other payment plans or debts with HMRC
- You have up-to-date tax returns
- It’s less than 60 days after the payment deadline
You can apply to set up a plan here. It’s worth noting that, if you choose to do so, interest will be applied to the outstanding balance from 1 February 2021.
It’s also a good idea to start thinking about next year’s Self Assessment tax deadline, so you are well-prepared when the time comes. Any untaxed income you have earned since 6 April 2020 will fall into the tax year 2020-21, which runs until 5 April 2021. The deadline for submitting your Self-Assessment tax return will be 31 January 2022.
Expert Tax Accountants
MCC Accountants’ specialist tax team will ensure you understand all of the issues surrounding tax legislation and will guide you through the process of completing your Self Assessment tax return, or do it for you if you wish. Tax affects everyone and knowing what to pay and when is not always straightforward, so it’s always a good idea to work with your accountant to do the job properly.
We can act as both corporate and personal tax advisors depending on the nature of your business, and we will cover everything you need to know when it comes to navigating the UK tax system. We can help you with personal tax, corporate tax and VAT returns as well as looking at longer term tax issues if you are considering selling your business, for example.
To speak to one of our corporate or personal tax advice team, please call today on 0161 707 1500, or complete our online enquiry form and we will be in touch shortly.
Our offices are based in Salford and we work with clients across Greater Manchester.