Payment of Self Assessment Income Tax usually due by 31 January
If you have not yet paid your income tax for the year ended 5 April 2020 that was due by the 31 January then there is good news – HMRC has announced that you will not be charged the initial 5% late payment penalty if you pay the tax or make a Time to Pay arrangement by 1 April.
Anyone worried about paying their tax should contact HMRC for help and support on 0300 200 3822. There is also a self-serve Time to Pay facility that allows taxpayers to spread the cost of their tax liabilities into monthly instalments until January 2022. You can set this up using the following link: https://www.gov.uk/pay-self-assessment-tax-bill/pay-in-instalments.
Submission of your Self Assessment Tax Return for the year ended 5 April 2020
Anyone who has yet to file their Self Assessment Tax Return for the year ended 5 April 2020 has until the 28th February to do so to avoid a late filing penalty of £100. This has been extended from the usual deadline of 31 January 2021.
If we prepare and file your personal tax return, then rest assured it has already been filed on time.
VAT Deferral payment scheme now open
For those businesses that deferred their VAT payments for quarters ended between March and June 2020 the VAT was originally due to be paid by 31 March 2021. You can now join the new online VAT Deferral New Payment Scheme to pay it in smaller monthly instalments, should you wish to do so.
Businesses will need to opt in to the VAT Deferral New Payment Scheme. To do this, please follow the instructions on the following link: https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19.
If we prepare your VAT Returns for you, then please get in touch as we would be happy to set this up on your behalf.
The Budget
Next week the Budget will be announced and there has been a lot of speculation on what it might include, especially around the potential extension of the furlough scheme and self-employment grant scheme. Once details are announced I will email you a summary of all key announcements.
As always, please get in touch if you have any queries.