Time to start thinking about tax!
The deadline for filing the 2020/21 self-assessment return online is 31 January 2022*.
While this deadline may seem ages away, especially at a time when you may be dealing with supply chain issues, staffing shortages, and other ongoing fallout from Brexit and the Covid-19 pandemic, it’s important not to let your tax return slip your mind. HMRC will not forgive you for a late filing. Even if your return is only one day late and/or there is no tax to pay, they will still charge you a penalty.
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 we are number ninjas, our super-powers don’t extend to bending time, 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 2021. If this situation applies to you then again you’ll need to get your information over to your accountant well before the deadline, as we close for staff holiday on Christmas Eve and don’t reopen until January.
It’s not just your self-assessment return that you need to consider, but the payment of the tax owing for 2020/21, which is also due by 31st January 2022.
In addition, the first payment on account for the 2021/22 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 2021/22 must be paid by 31 July 2022.
While we understand that there are lots of other things happening in the world right now, remember – a superhero is only as good as their sidekick! Get your information to us in good time so that we can activate our number ninjas!
* Where a notice to file a return was issued after 31 October 2021, a later deadline of three months from the date of issue of the notice to file applies.