Self Assessment Deadline Extended Image
The extension is for filing only, Interest will be charged on any tax liability from 1 Feb 2020. So individuals who are finding it difficult to file the returns this week can make an estimated payment.
This announcement is seen as a relief for many who were supposed to file their self-assessment tax return by 31 Jan 2020 and were not able to do so because they are going through some unusual circumstances due to Covid-19.
Earlier, HMRC had decided to treat the late filing differently. They had decided to send the penalty who would fail to file their return by 31 Jan 2020, however they made it clear that if the late filing was due to any unusual circumstances a claim can be made against that charge.
If an individual has a valid reason due to which they couldn't file the tax return they can claim against it and HMRC also made it clear that it will accept Covid- 19 as an unusual circumstances to waive off the penalty depending on how it has affected the individual.
This would not help lift the pressure off the person who was not able to file the return as he will be stressed out about getting the penalty and then going through the hassle of making a claim and all the paper work involved.
On the other hand, HMRC will have to process so many claims and that would have been time consuming as well. This extension is definitely going to save time and resources of the government and will give` breathing space' to individuals who are going through difficult times.
If you can HMRC is encouraging individuals to file the return by 31 Jan 2020. Thorough self-assessment tax return you have to declare your untaxed income and claim any expenses.
According to the website Gov.Uk you need to file the tax return for the tax year 2019/2020 which runs from 6 April 2019 to 5 April 2020 if the following applies to you:
- ● You are a sole trader and have earned more than £ 1000 in the tax year 2019- 2020.
- ● You run a business as a business partner
- ● You received rent from a property in the tax year 2019- 2020
- ● You have income from savings, dividends, any foreign income.
- ● You get child benefit
You will also have to file self -assessment tax return if HMRC has asked you to for any other reason.
Have you UTR number, National Insurance number ready along with all the income that you have not reported yet. You will also have to report any capital gains that you had during the tax year. You might also have to report your foreign income for example, you sold your property back home. To know more about the foreign income check read our blog on reporting foreign income in the UK.
If you are going through any financial crisis and you think you won't be able to pay your income tax bill, you can set up a payment method and spread the payments over a period of 12 months. You first need to file the return, HMRC will process how much you have to pay and then an instalment method can be arranged with HMRC.
If you are self-employed and you want to get your self-assessment done on time you can contact Taxaccolega at 020 8127 0728, we are accountants in Croydon and we can complete the self-assessment tax return on your behalf and submit it once you have approved it.
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