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Tax Return: Your Deadline is Looming

Another deadline approaches. We’re cutting this one a little close, but if you’re reading this and haven’t completed your self-assessment tax return yet, we’re betting you could use a helping hand and a little nudge in the right direction. So, we’re here to help – read on to find out what you need to do – and when you need to do it.

The Deadline For Filing, Online

If you wanted to file your tax return by paper, you’ve missed the boat. That deadline was back on the 31st of October. Worry not, you can file your tax return online up until the 31st of January. Make sure you do though, otherwise you’ll be fined £100 automatically if you don’t file in time. Unless you’ve got what the HMRC deems a reasonable excuse or have Covid-19 related reasons for not filing on time.

The late filing fee applies even if there’s no tax to pay. There’s a £10 per day fee for each day that you don’t file after 3 months have passed, which is capped at £900. Then after 6 months you are fined 5% of the tax owed, or £300 (whichever is the bigger number). This happens again after 12 months.

The Deadline for Paying

The deadline for payment is the 31st of January this year too, unless you’ve agreed something else with the HMRC like a Time To Pay Agreement.

Payments on Account

If you’ve made payments on account for last year’s tax return things do get a little bit more complicated, but you can find a full guide to payments on account here.

It has been a tough year for businesses and the HMRC do recognise this. That’s why they’re waiving fees if you can’t file on time due to coronavirus related issues. This won’t be waived in advance of the fine being issued, you have to go through an appeals process in order to have the fee waived. You won’t have late payment fees waived either, sadly.

If you’re still not sure what to do about your self-assessment tax return, get in touch here and we can help.