Figures from HM Revenue & Customs (HMRC) show that over 2M people have completed their tax returns online so far in January 2020, 17.4% of the current annual total with more than 3M customers still to file.
The deadline for completing the tax returns online is 11.59pm on 31 January, and those who miss it face an initial £100 penalty, rising by an additional £10 a day after three months.
At FKGB, we try to start the tax process in April each year to avoid the last minute January rush. Therefore, we are looking forward to the coming year and have outlined some critical dates to bear in mind.
2019-20 important deadlines
6 April: first day of the new 2020-21 tax year Depending on what has been agreed in the Budget (scheduled for Wednesday 11 March), new tax rates and allowances for 2020-21 will come into force from today, so make sure you know if anything has changed. If you have all of the information you need, you could file your 2019-20 tax return from this date.
31 July 2020: second payment on account due Self-employed workers who pay tax through payment on account will have to make their second payment by midnight on 31 July. The amount you pay is an estimate based on your earnings in 2018-19. If you still owe tax (for example, if you earned more than you did in 2018-19), a further ‘balancing payment’ will be due on 31 January 2021. This is also when you’ll have to make your first payment to cover the 2020-21 tax year.
5 October 2020: register for self-assessment If you’ve never submitted a self-assessment tax return before, you must register by 5 October 2020 in order to submit for the 2019-20 tax year. This will allow you to get your ‘Unique Taxpayer Reference’ (UTR) number and activate code in time which you need to file your first return. 31 October 2020: paper tax returns due This is the deadline for filing a paper tax return, However, if you receive a notice from HMRC that you must file a tax return after 31 July 2020, you’ll need to send back the completed form within three months of the date issued on the notice. If you miss the deadline for filing your paper tax return, don’t be tempted to try and file it late. You’ll still have time to complete an online tax return instead – as these aren’t due until 31 January.
30 December 2020: opt into PAYE If you file your tax return online and also have earnings taxed under PAYE, you can opt to have overdue tax collected via your tax code throughout the following year. However, to be eligible your tax bill must be less than £3,000 and you must file your online return by this date. The advantage of this is that any tax payable would be paid over 12 months from April 2021, rather than a single lump sum by 31 January 2021.
If you have any tax filing obligations for either 2018-19 or 2019-20, please feel free to be in touch at info@fkgb.co.uk or calling 02079938519.
