The deadline for submitting online returns and paying any tax owed to HM Revenue and Customs (HMRC) is midnight on Tuesday, January 31. Just over 12 million taxpayers are expected to have filed their returns online by the end of today, however, people failing to submit their Self-Assessment or pay any tax owed after January 31 may face a penalty.
The penalties for late tax returns include an initial £100 fixed fine, which applies even if there is no tax to pay, or if the tax due is paid on time, although HMRC has said it will treat those with genuine excuses leniently. People who are unable to pay what they owe in full may be able to set up a payment plan through Time to Pay, allowing them to spread the cost into monthly instalments.
Self-employed workers who received the fourth or fifth Self-Employment Income Support Scheme (SEISS) payments, worth up to £15,000 in total during 2021, must also include this on their tax return.
SEISS grants 2021/22 financial year
Applications for the fourth grant opened on April 22, 2021 and closed on June 1, 2021.
This was a taxable grant based on 80 per cent of three months’ average trading profits, paid out in a single instalment and capped at £7,500.
Applications for the fifth grant opened on July 29, 2021 and closed on September 30, 2021. This grant introduced two levels of payment based on the reduction in turnover experienced between an individual’s reference year.
These two levels were either:
- a grant of 80% of three months’ average trading profits capped at £7,500 for those with a turnover down by 30% or more
- a grant of 30% of 3 months’ average trading profits capped at £2,850 for those with a turnover down by less than 30%
You can find more details about the SEISS grants on GOV.UK here.
Earlier this month, it emerged that people calling HMRC’s Self-Assessment helpline faced an average waiting time of 27-minutes.
HMRC has estimated that 65 per cent of calls to the Self-Assessment helpline during the two weeks ending January 8 related to matters that customers could have resolved online.
A letter from HMRC chief executive Jim Harra, written in response to correspondence from the Treasury Committee, said the quickest and easiest way for customers to manage their tax affairs and get answers to their queries is online, through either the HMRC mobile app or the web-based personal tax account.
In addition to filing their return and making payments online, customers can also use HMRC’s digital assistant, published guidance, YouTube videos and live webinars, the letter said.
You can find more information about filing your Self-Assessment tax return on GOV.UK here - just remember to submit it before midnight.
To keep up to date with the latest HMRC news, join our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out four times each week - sign up here.
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