Meanwhile the deadline has passed for paper-based self-assessment tax returns for the 2019-20 tax year. Anyone that missed the 31st October 2020 deadline for paper returns will have to submit their return online by 31st January 2021 or risk £100 late-filing penalties.
Those filing self-assessment tax returns for the first time must register with HMRC to receive their secure logins. The registration process can take several days, as HMRC will send secure login details via post, therefore registration is recommended at the earliest available opportunity.
Self-assessment tax returns are primarily required for self-employed sole traders that earned more than £1,000, as well as individuals involved in a business partnership.
Nevertheless, those who generate an income from renting out residential or commercial property, savings, investments, commission or foreign income will also be required to register for self-assessment.
Individuals liable for the High Income Child Benefit Charge (HICBC) may also need to submit a self-assessment tax return prior to 31st January 2021. Those earning more than £50,000 who claim child benefit – or if their partner claims it – are liable for HICBC.
HMRC’s Interim Director General of Customer Services, Karl Khan, said: “The vast majority of Self Assessment customers complete their tax return by the 31st January deadline, but you don’t need to wait until January; you can send it back now and get it out of the way.
“HMRC is determined to help customers during this difficult time. We know many customers will have been adversely affected by the coronavirus pandemic, or will need help to spread the cost of their tax bill. That’s why we’ve made it quick and simple to set up a payment plan to spread the costs and help people get back on their feet. It’s easy to do online and there’s no need to call us to set it up.”
Once Self Assessment customers have completed their 2019 to 2020 tax return, and know how much tax is owed, they can set up their own payment plan to help spread the cost of their tax liabilities, up to the value of £30,000.
They can use the self-serve Time to Pay facility to set up monthly direct debits and this can all be done online so there is no need to phone HMRC.
The unfortunate reality is that HMRC is not tasked with advising individuals on the organisation of their tax affairs. If you want to make sure you pay the correct amount of tax for the 2020-21 tax year, we can give you complete peace of mind.
As part of our fixed-price self-assessment tax return service we utilise HMRC-approved software to finalise your tax return, calculate your tax liability, submit the return ahead of the deadline and keep in contact with you on the tax owed and when it is due.
For a free initial consultation on your self-assessment tax return obligations well ahead of the 31st January 2020 deadline, call our friendly and experienced team today on 0203 325 9825.
Alternatively, you can drop us a line using our online enquiry form and we’ll be in touch to outline how we can take away the worry of self-assessment.
Last updated: 11th January 2021