Are you self-employed? The self assessment tax return deadline is looming
October 26, 2021
The deadline to complete a tax return for the 2020 to 2021 tax year is fast approaching. HM Revenue and Customs (HMRC) are reminding Self Assessment customers to check that they have the correct information in order to complete their tax return.
It’s vital to know as much as possible about the tax return before the end of January. There are two dates by which a self-assessment tax return should be filed:
- 31 October following the end of the tax year (paper submission)
- 31 January following the end of the tax year (three-month extension for online filing)
Anyone who is new to Self Assessment must register via GOV.UK to receive their Unique Taxpayer Reference (UTR). Self-employed individuals must also register for Class 2 National Insurance.
What if you miss the cut off deadline?
You do not want to be faced with an unforgiving penalty. If you miss the 31st January date, you’ll be handed an instant £100 penalty. One of two things may happen:
- If you haven’t paid the tax, you have 30 days to pay the bill. Afterwards, 5% interest is charged on it.
- A late return of 90 days or more will result in a £10 a day penalty on top of your outstanding bill, for a maximum of £900 over 90 days. After six months, it’s a further £300 fine or 5% of your tax owing – whichever is greater. When you get to 12 months after the Self Assessment date, and it still hasn’t been submitted, there will be another £300 or 5% of your tax owing on top of what you already owe.
Do I need to use an accountant?
You do not need an accountant to file your tax returns, you can file them yourself.
However, it is important that you understand the legal requirements, not only in terms of the figures that are included, but in terms of the deadlines and penalties. You’ll get a penalty if you need to send a tax return and you miss the deadline for submitting it or paying your bill. Get in touch with us here or give us a call on 0161 974 0735 so you can avoid these penalties.