There is less than one month remaining to submit the 2020 to 2021 Self Assessment tax return and pay tax, businesses have been warned.
Returns submitted after the 31 January 2022 deadline will incur an automatic £100 penalty fine.
Here’s what you need to know.
Who needs to submit a tax return?
You must submit a tax return if you generated untaxed income in the last tax year (06 April to 05 April) and were:
- self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on)
- a partner in a business partnership
Or have any other untaxed income, such as:
- some COVID-19 grant or support payments
- money from renting out a property
- tips and commission
- income from savings, investments and dividends
- foreign income.
When is the deadline?
The last day to submit your tax return and pay tax is midnight 31 January 2022.
What if I cannot afford to pay tax?
If you have been impacted by the coronavirus pandemic and cannot afford to pay your tax bill in full or on time, you may be able to set up an affordable payment plan.
The Time to Pay facility enables self-employed business owners and landlords to manage tax bills worth up to £30,000 without speaking directly to HMRC, providing you also meet the following criteria:
- have filed your tax return for the 2020 to 2021 financial year
- owe less than £30,000
- are within 60 days of the payment deadline
- plan to pay your debt off within the next 12 months or less.
“Don’t leave it until the end of January”
Commenting on the deadline, Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Filling in a tax return won’t have been on many people’s to-do lists for Christmas, but please don’t leave it until the end of January either.
“We have videos, guidance and helpsheets to support you – just search ‘Self Assessment’ on GOV.UK to find out more.”
Get advice today
For help and advice with related matters, please get in touch with our team today.