A Self Assessment reminder

HM Revenue and Customs has issued a reminder that there are now less than 100 days left to complete a Self-Assessment tax return online before the January 31 deadline.

You can complete your 2019 to 2020 tax return at any time up to the deadline but completing it early allows time to pay or set up a payment plan.

The majority of people choose to complete the return online, which provides an immediate calculation of any tax owed.

The deadline for competing a paper tax return and sending it to the taxman was October 31.

The HMRC has also issued a reminder that people must complete a return if they:

• have earned more than £2,500 from renting out property
• have received, or their partner has received, Child Benefit and either of them had an annual income of more than £50,000
• have received more than £2,500 in other untaxed income, for example from tips or commission
• are a self-employed sole trader whose annual turnover is over £1,000
• are an employee claiming expenses in excess of £2,500
• have an annual income of over £100,000
• have earned income from abroad that they need to pay tax on

Around 11 million people complete the tax return every year.

HMRC’s Interim Director General of Customer Services, Karl Khan, said: “The vast majority complete their tax return by the January 31 deadline, but you don’t need to wait until January; you can send it back now and get it out of the way.

“HMRC is determined to help customers during this difficult time. We know many customers will have been adversely affected by the coronavirus pandemic, or will need help to spread the cost of their tax bill.

“That’s why we’ve made it quick and simple to set up a payment plan to spread the costs and help people get back on their feet. It’s easy to do online and there’s no need to call us to set it up.”

Once people have completed their 2019 to 2020 tax return, and know how much tax is owed, they can set up their own payment plan to help spread the cost of their liabilities, up to the value of £30,000.

They can also use the self-serve ‘Time to Pay’ facility to set up monthly direct debits and this can all be done online.

The taxman is also warning people to be aware of copycat HMRC websites and phishing scams.

And be alert if someone calls, emails or texts claiming to be from HMRC, saying that you can claim financial help, are due a tax refund or owe tax. It might be a scam. Check GOV.UK for how to a recognise genuine HMRC contact.

If you are completing a tax return for the first time, you will need to register for Self Assessment.

If your Self Assessment debts are over £30,000, or you need longer than 12 months to pay your debt in full, you may still be able to set up a Time to Pay arrangement.

Customers using self-serve Time to Pay will be required to pay any interest on the tax owed. Interest will be applied to any outstanding balance from February 1 2021.

Limited company directors who are currently in Self Assessment but no longer meet any other criteria to remain in scope, can either:

• complete their tax return by the deadline. HMRC will update their record and they won’t be issued a notice to file for the following year
• call HMRC, which can agree to withdraw the notice, if the customer no longer satisfies the criteria for this year

Also, From April 6 2020 the process for Capital Gains Tax on UK residential property sold since that date has changed.

It must now be declared and paid within 30 days of completion. This only applies where the property in question is not the seller’s main home.

• To discuss any tax matters please contact me on 01772 430000