If you are planning to submit a self-assessment tax return, the paper deadline is:
31st October 2019
If HMRC does not receive your return by this date, you risk a fine of at least £100.
The deadline for online tax returns is later; 31st January 2020.
Tips for Submitting a Correct Form
Many people find the idea of completing a tax return a daunting prospect. But there’s no need for that to be the case. If you plan ahead and have all of your documents in order, it should be a simple process.
If you are submitting a paper return, you must complete an SA100 form. As long as you submit the return by the end of October, HMRC guarantees that they will calculate your tax bill before the payment date of 31st January.
If you meet any of the below criteria, you must complete a self assessment tax return:
- You are self employed with an income above £1000
- You, or your partner, had an income above £50,000 and one of you claimed child benefit
- You had an income above £2500 from renting out property
- You earned more than £100,000
- You earned more than £10,000 pre-tax from savings, investments and dividends
- You need to pay Capital Gains Tax
- You are a trustee
- HMRC told you that you didn’t pay sufficient tax last year
When completing your tax return, ensure you plan ahead. Have all of the relevant documentation in order and to hand, including bank statements, receipts and employment income records, of which your PAYE coding notices are the most important.
Check whether your figures are gross or net on items such as bank interest and dividends. Gross figures include tax; net do not.
Check all figures over and over again; small mistakes can have huge consequences. Ensure you have a copy of all the information you need before signing the form and sending it back to HMRC.
If you are still awaiting additional information whilst completing your tax return, you may provide provisional figures, so that there is no delay in you completing or sending off the form. Make sure you complete the appropriate section of the form which lets HMRC know that the information you are providing is provisional.
Even if you do check thoroughly, you may sometimes notice a mistake once you have sent off the form. Do not worry; as long as the error was unintentional, you have 12 months to send an amended return. Remember though, that if you haven’t paid all the tax you owe by 31st January, you will have to pay interest on it.
Paying Your Tax Bill
There are a number of ways for you to pay your tax bill. If you want to ensure your payment is received by HMRC on the same or the next day, you can use online or telephone banking, CHAPS, a debit or corporate credit card online, or at your bank or building society, for which you’ll need a paying-in slip from HMRC. To pay within three working days, you can use direct debit (if you have set one up before with HMRC) or a cheque. If you want to use direct debit and you have not set such a payment up with HMRC before, the transaction may take up to five days to be processed.
If you have correctly completed your tax return, but are struggling to pay the tax you owe, you must contact HMRC, who may be able to organise for you to pay over a longer period. If you believe you have paid too much tax, you should contact HMRC to raise a query. You should not assume that HMRC will find this out automatically.
You will have to pay a £100 fine if you miss the deadline. If you do not pay this fine within three months, it will increase by £10 every day, for a maximum of ninety days. You will also have to pay interest on any tax owed. If you have a genuine reason for missing the deadline, you can appeal the fine.The list of reasonable excuses is available here. Note that if you have not received a tax return from HMRC when you were expecting one, it is your responsibility to contact the organisation to request one.
If you have received a tax return but do not believe you have to fill one in, do not be tempted to simply ignore it. If HMRC does not receive your tax return, it will automatically issue a fine. Instead, contact HMRC on the telephone number provided on the form. If it is agreed that that you have been sent the tax return in error and that you do not need to fill it in, this will be confirmed in writing.
Advice and Support from MCC Accountants
If you are concerned about submitting your tax return, come and speak to a member of MCC Accountants’ team of tax consultants in Manchester. Contact us now.