HMRC warning as Britons could face £100 penalty if missing vital tax deadline this month | Personal Finance | Finance
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HMRC helps millions of people to deal with their tax affairs each year, and October is a particularly busy month. This is because October 31, 2021 at midnight marks the deadline for paper tax returns, with the online return deadline following shortly behind on January 31, 2022. A tax return is a form in which certain individuals will have to declare their income and capital gains for a tax year – with the information used to calculate tax liability.
HMRC is now encouraging customers to register early and check they have the correct information to complete their tax return.
This is so they can access guidance on the matter and be aware of the steps they will need to take.
Record keeping, the potential for a first tax payment to include a payment on account and knowing when the filing and payment deadlines are, will all be important.
However, people will need to make sure they complete their tax return in a timely manner, and meet the deadline laid out by the Government.
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“If anyone is worried about paying their tax bill, support is available – search ‘time to pay’ on GOV.UK.”
Time to Pay allows Britons to spread their tax payments over a longer period of time in order for the bill to be more affordable – but a formal arrangement must be reached between the person and HMRC.
The fastest way for Britons to complete their tax return is online, and this can be done via a customer’s Personal Tax Account.
Individuals will need their Unique Taxpayer Reference (UTR) number in order to access their tax return. They will also need to provide details of their income or earnings and other financial information.
Thankfully, to provide the appropriate guidance to people, the GOV.UK website is also full of detailed information on what documents a person will need.
Those who were in receipt of furlough or SEISS, schemes designed to help throughout the crisis, will need to pay particular attention.
This is because these individuals will need to include the details of any and all support they received during the 2020/21 tax year.
Employed people who received furlough will need to enter their earnings and Income Tax as laid out on their P60.
The P60 document should include any furlough payments a person got up to April 5, 2021, and so these do not need to be included as a separate entity on a tax return.
Self-employed individuals and those who are in a partnership and who received coronavirus related financial support will need to declare this on their Self Assessment.
Self employed people should either use form SA103S or form SA103F – the first for simple tax affairs, and the second if annual turnover was above the VAT threshold for the tax year.
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