The deadline for filing your Self Assessment tax returns online is looming on 31 January 2020. Consequently, around 12 million people are required to complete these tax returns. They are mainly those who are self-employed or have more than one source of income. For those people who haven’t filed online before, they’ll need to register first and should allow an extra 20 working days, in other words register by Friday 3 January 2020.
Tax returns must be filed by 11.59pm on 31 January and any tax owed from the 2018/19 tax year must also be paid to HM Revenue & Customs (HMRC) by this date. Last year 3.5 million taxpayers hadn’t yet completed their tax returns a week ahead of the deadline and 700,000 people filed their returns on the deadline day! It’s important to act now to get your tax in order as failing to meet the deadline (even if you don’t owe any tax) carries a penalty of £100 with further penalties for delays after that.
Who must complete a Self Assessment tax return?
While most UK taxpayers pay tax on their wages, pension or savings at source, around 12 million people who are self-employed or who have extra untaxed income must complete a tax return for the last tax year which runs from 6 April 2018 to 5 April 2019. This includes self-employed individuals with income over £1,000, those with property rental income of over £2,500, those with over £100,000 in taxable earnings and those who filed a self-assessment tax return last year.
You can use a free Government tool to check whether you need to submit a Self Assessment tax return and it won’t send your details to HMRC. Check it out.
How do you file a tax return online?
If you’ve provided an online tax return before, log in to your Self Assessment account with your ‘Government Gateway’ or ‘Gov.uk Verify’ details and get started.
If you haven’t completed an online Self Assessment return before, then go to the HMRC website and register to set up an online account. You will find three different forms – choose from self-employed, not self-employed or in a partnership. HMRC will send your 10-digit ‘unique taxpayer reference’, by post and you’ll need this to log in.
Your local Accountants, such as HB Accountants, can provide all the help and support you need to get an overview of your income, identify any allowances to reduce your tax bill and calculate the tax you owe.
Tax payment deadline 31 January 2020
Any tax that you owe from the last tax year 2018/19 must be paid by 31 January 2020 plus half of the tax likely to be owed from the current tax year 2019/20, known as a ‘payment on account’. This payment is based on the amount of tax paid the year before, so long as it was over £1,000, and you can ask for it to be reduced if you anticipate lower profits. The next half must be paid by 31 July 2020, and come 31 January 2021, you’ll settle 2019/20 tax bill.
You can pay your tax by debit card, bank transfer, or cheque, or at your bank with an HMRC paying in slip. Unfortunately, you can’t pay at the Post Office or by using a personal credit card any longer.
If you’ve decided to get the help of a professional Accountant to complete your tax return correctly then don’t leave it until the last minute. Get in touch as soon as possible to help ensure you meet the deadline.
Penalties for missing the Self Assessment deadline
The fine for late tax return submissions is £100, even if no tax is due or you paid your tax bill on time. This increases over time:
- After 3 months – an extra £10 per day penalty, up to a maximum of £900
- After 6 months – an extra five per cent of the tax due or £300, whichever is greater
- After 12 months – a further five per cent of the tax owed or £300 charge, whichever is greater
As well as fines for filing your tax information late, there are also fines for late payment of the tax you owe. The penalty is 5% of the tax due after 30 days, 6 months and 12 months.
Accountants near me
HB Accountants provide accountancy services including personal Self Assessment tax returns, VAT returns and corporation tax returns, as well as tax planning and management accounts. We help individuals and businesses in Hoddesdon, Broxbourne, Ware and Hertford, and across Hertfordshire, Essex and north London. If you need a local Accountant, then contact our friendly team by calling 01992 444466 or email email@example.com