There are now less than two months to file your 2020-21 Self-Assessment tax return. Last year over 12.5 million taxpayers were required to complete a Self-Assessment tax return but over 1.8 million taxpayers missed the 31 January deadline.
The deadline for submitting your 2020-21 Self-Assessment tax returns online is 31 January 2022. You should also be aware that payment of any tax due should also be made by this date. This includes the payment of any balance of Self-Assessment liability for the 2020-21 plus the first payment on account due for the current 2021-22 tax year.
If you miss the filing deadline then you will usually be charged a £100 fixed penalty if your return is up to 3 months late, regardless of whether you owed tax or not.
HMRC is encouraging taxpayers to complete their tax return as early as possible to avoid getting stressed as the filing date looms. In fact, last year over 2,700 taxpayers submitted their tax returns on Christmas Day with a further 8,500 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. Once registered an activation code will be sent by mail. This process can take up to 10 working days.
Most COVID support scheme grants are treated as taxable income in the same way as other taxable receipts and need to be reported to HMRC. This means that if you received a support payment during the 2020-21 tax year, such as the Self-Employment Income Support Scheme, this needs to be reported on your self-assessment tax return. If you received the £500 one-off payment for working households receiving tax credits this does not need to be reported under self-assessment.
Source: Informanagement