HMRC announces extension to the Self-Assessment Tax Return filing deadline but you should not delay filing!
There is still time to prepare and file your online self-assessment tax return for the tax year ending on the 5th April this year, and to pay any tax owed. Both of these usually need to be completed by midnight 31st January. However, HM Revenue and Customs has recently announced an extension to this deadline for the second year in a row.
The deadline is now set for the 28th February.
So what is a self-assessment?
Self-assessment is a system that helps you report your income, as well as pay tax to the HMRC. If employed, your income tax should automatically be deducted from your wages. This must be completed by the self-employed, earn dividends, as well as individuals and businesses with income other than their wages.
The world has seen a trend featuring a vast increase of small businesses being opened by people who were furloughed during the beginning of Covid-19. In fact, data from the Companies House found that “nearly half a million businesses were registered in the UK” in 2020. This is an increase in comparison to 44,500 for the same period as in 2019.
For many sole trader and partnership businesses, this will be the first time filling out their self-assessment tax returns. This is especially given the entrepreneurial increase mentioned above. Depending on trading circumstances and income sources, you are likely to require a variety of information. That may include P60’s and P45s, Capital Gains, Inheritance Details, trading income statements, etc.
If you are unclear on how to prepare and file your tax return, it may help to use accounting services. In that case, be sure to give your accountants sufficient time to handle this on your behalf. Keeping relevant tax related documents close also helps minimise any issues.
You will get a penalty if you miss the deadline for submitting or paying your bill late. The late pay penalty is £100 if your tax return is up to 3 months late. The amount you pay will go up due to charged interest if you pay your tax bill late, or the tax return is more than 3 months late.
If you want HMRC to be collecting the tax you owe automatically from your wages and/or pension, you need to submit your online return by the 30th of December. You will be unable to do this for this year, due to the date having passed, but you can do it for next year.
The tax return deadline is coming soon, so be sure to fill out all the forms and send in any needed documents; otherwise you may be asked to send in more documents, and to pay a late fine.
If you feel that you need help with anything, do not hesitate to contact us on email@example.com as we are always happy to assist you.