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Do YOU know when your tax return is due?

The deadline for filing the 2018/19 self-assessment return online is 31 January 2020*.

While this deadline may seem ages away, with Christmas (and Brexit!) on the horizon it could be easy to get distracted until you realise that you only have a few weeks left to submit. A late filing penalty is charged if the return is filed late, even if it is only late by one day and/or there is no tax to pay.

You can avoid a fine by submitting your return well before the deadline, which means that now is a great time to be preparing all your information to send across to your accountant well in advance of the New Year. Although it goes without saying that we are awesome at our jobs, we haven’t yet got to the stage where we can perform miracles, so if you only hand your information to us on the deadline date, it’s unlikely we’ll have time to turn your return around to avoid a fine!

If you only have a tax liability of £3000 or less, you may want to pay this via an adjustment to your tax code, in which case the deadline is even earlier – 30th December 2019. If this situation applies to you then again you’ll need to get your information over to your accountant well before the deadline. (Please be aware that we are closed for staff holiday between Christmas Day and 2nd January.)

It’s not just your self-assessment return that you need to consider, but the payment of the tax owing for 2018/19, which is also due by 31st January 2020.

In addition, the first payment on account for the 2019/20 tax year is due by the same date. Payments on account must be made where the previous year’s liability was £1,000 or more unless 80% of your tax liability is deducted at source, such as under PAYE. Each payment on account is 50% of the previous tax year’s tax and Class 4 National Insurance liability. The second payment on account for 2019/20 must be paid by 31 July 2020.

So while all eyes may understandably be on 31st October at the moment, we shouldn’t forget to look ahead to 31st January! If you have queries about when your self-assessment return and tax payments are due, please speak to a member of our team.

 

* Where a notice to file a return was issued after 31 October 2019, a later deadline of three months from the date of issue of the notice to file applies.