MJB Avanti Warn It’s Not Only Christmas That Is Looming

The self-assessment deadline is approaching, and with no update from the Government, despite the pandemic, HMRC are still expecting all self-assessment tax returns to be filed in time for the January 31^st deadline.

Last year over 11 million taxpayers were required to complete a tax return, with over 3,000 taxpayers submitting their tax returns on Christmas Day and a further 9,254 taxpayers completing their tax returns on Boxing Day. If you are filing online for the first time you should ensure you register to use HMRC’s Self-Assessment online service as soon as possible.

The Fine Print

The January 2020 deadline saw almost 1 million taxpayers missing the deadline and receiving an automatic fine of £100. The fine is imposed by HMRC even if there is no tax to pay. Failure to file within 3 months can incur a further £10 per day penalty for up to 90 days meaning a potential total fine of £1,000.

Do You Need To File?

Company Directors, Partners, and Sole Traders are all recognised as those who need to file, but did you know you may need to complete a tax return if you have received untaxed income from:

• Rental Property
• Foreign Income
• Income from Savings & Investments
• Tips or Commission

*This list is not exhaustive

Due To Coronavirus You Can Defer Payments

While HMRC are still expecting the submissions to be made, they are allowing tax liabilities to be deferred.

The second payment on account for 2019-20 was due on 31 July 2020 but there was an option to defer this as part of the Government support measures during the coronavirus outbreak. There are also other options to defer payments due on 31 January 2021 for up to 12 months. This includes a self-serve Time to Pay facility online for debts up to £30,000 or by arranging this with HMRC. Taxpayers will be required to pay interest on the tax owed on any outstanding balance from 1 February 2021.

MJB Avanti are your local tax specialists, helping you to meet your deadlines, and avoid the fines. If you’re unsure whether you need to submit a tax return, call MJB Avanti to discuss your situation (08000) 388 799

Online, On Time, No Fine.

For more information visit the MJB Avanti website