HMRC have issued a letter addressed to the main accountancy bodies on the extension of the filing deadline and waiving of late filing penalties after 31 January 2021.
As expected, HMRC have decided to not extend the self-assessment filing deadline of 31 January 2021 and have explained the reasons for doing so:
- HMRC want to encourage their customers to complete their returns by the filing deadline so that they are able to continue to get support if they need it to pay their tax
- But no one will have to pay a penalty if they cannot file on time and are deemed to have a valid reason of filing late due to the pandemic.
Although HMRC have not stated what constitutes as a ‘valid reason’ due to the pandemic, here at Moore (South) we urge you to complete your tax return as soon as possible to ensure that you meet the deadline, to avoid any penalties.
Each year, around 11 million people have to complete a self assessment tax return. In 2019, 5.4 million taxpayers still hadn’t filed by the 31st December.
In saying all this there are rumours from a number of very knowledgeable people in the accountancy profession that HMRC may eventually relent later this month, extending the self assessment deadline to 31 March. At this stage, however, these are just rumours and every effort should be made to meet the existing deadline of 31 January to eliminate any chance of a penalty for late submission.
Do you need to file a self assessment tax return?
You will need to complete a self assessment tax return if:
- You are a self employed sole trader earning more than £1,000 per year, (before taking off anything you can claim tax relief on)
- a partner in a business partnership
You may also need to complete a tax return if you have untaxed income such as:
- Money from renting out a property
- Tips and commission
- Income from savings, investments and dividends
- Foreign income
You will also need to complete a return if:
- You were a company director
- Claimed child benefit, and you or your partner’s income was over £50,000
Not sure if you need to file a self assessment tax return? Our tax team will be on hand to answer any queries. Contact us.
When will you need to make your self assessment payments?
If you haven’t agreed a Time to Pay with HMRC, then your July 2020 payment on account along with the balancing payment will be due on 31 January 2021.
Need more information?
If you are concerned about your tax return, whether you should be submitting a tax return or worried that you have left it too late, then please contact your local Moore office so that we can advise and assist where possible.