Return filing season likely to be even busier than normal
With less than four weeks to go until the self-assessment filing deadline, HMRC has said that nearly 6 million returns are still outstanding. Why might 31 January this year be more urgent than last time round?
If the tax return filing deadline is missed, an automatic penalty of £100 is charged - even if there is no tax due, or a refund is owed to you. HMRC’s latest press release says that almost half of the returns expected to be filed for 2021/22 are still outstanding, meaning this January is going to be the usual last-minute scramble to get returns filed. However, this year brings extra pressure. The deadline was extended while the country was struggling with the aftermath of the pandemic, but no such concession is likely to be given this time round, so it's important to get moving on filing now. This is especially true if you are yet to provide an accountant or tax advisor with information to file for on your behalf, as they are likely to be increasingly busy as the month draws on. Many will understandably operate on a “first come, first served” basis, and will have limited capacity.
Completing your return and establishing your tax liability will also allow you to contact HMRC to agree a time to pay arrangement ahead of the deadline. Doing so will avoid a late payment penalty, as long as you stick to the payments agreed.
Related Topics
-
Government launches consultation package on HMRC powers and tax administration
The government has launched a wide-ranging package of consultations on tax administration, including proposals to strengthen HMRC's debt recovery powers, modernise tax agent regulation and expand the use of digital services. Several of the measures could have significant implications for taxpayers and advisers. What has been proposed?
-
What are HMRC’s new procedures for export evidence?
HMRC has updated its guidance about the proof of export you must retain if you ship goods abroad and zero-rate the sales. How will the new guidance affect your business?
-
Getting out of the child benefit tax trap
You expect to earn over £60,000 for this tax year which means you may have to pay back some or all of your family’s child benefit due to the high income child benefit charge (HICBC). Is it possible to reduce the charge?