There is now less than a month remaining before Self-Assessment Tax Returns for the tax year 2020/21 must be submitted, to HM Revenue & Customs.
By midnight on 31 January 2022, individuals or businesses who are within scope of the self-assessment rules must have submitted their tax return and made the balancing payment for 2020/21, to avoid penalties.
The first payment on account for the tax year 2021/22 will also be due on this same date.
If you are a partner in a partnership, or you have earnt in excess of £1,000 as a result of self-employment, you will need to submit a tax return.
Additionally, if you have any other untaxed income in 2020/21, you will need to report this to HMRC via a self-assessment tax return. This includes:
- earnings in excess of £2,500 from renting out property;
- where you or your partner received Child Benefit and either of you had annual income above £50,000;
- you are an employee claiming expenses in excess of £2,500;
- you have an annual income over £100,000; or
- you earned income from abroad that you need to pay tax on;
- income from savings, dividends and investments; and,
- some COVID-19 grants and support payments.
It is particularly important that due care and attention is applied where COVID-19 grants are being reported, as failure to populate your return correctly could lead to either over-or-under payment.
This above list is not all-inclusive, so we would encourage you to seek professional advice if you are unsure about whether your own set of circumstances necessitates a tax return.
You can pay tax owed by debit card, Direct Debits, Faster Payment and BACS; however, be mindful of the fact that the method you opt for will affect how long it takes for HMRC to receive funds.
If you are concerned that you may not be able to pay your tax bill due on 31 January, speak to an adviser or HMRC at the earliest opportunity.
Contact me or one of the team to discuss how we can help you fulfil your annual self-assessment obligations on 01767 315010, or visit www.georgehay.co.uk
