HMRC have recently launched a dashboard to inform taxpayers about the time it is taking to deal with enquiries and settle tax repayments, with delays of up to eleven months in some instances.
The dashboard, which will be updated weekly, gives accurate and clear information of HMRC’s service performance, and whether they are achieving response time targets, and if not, how long the delay is expected to be.
Refunds from self-assessment tax returns are held in a backlog, with HMRC currently handling submissions from 5 May. This means that claims are taking 56 days to handle, compared with the usual 15 working day turnaround.
Marriage allowance claims are also affected, taking nearly three times the usual turnaround time.
R40 income taxed at source, whereby agents are trying to claim a refund of income tax deducted from savings and investments, is one of the worst affected, suffering delays of nearly a year, with HMRC currently handling requests dating back to August 2021.
Delays are expected to be resolved by October 2022 at the earliest, according to HMRC, however, this is an estimate and subject to change.
Access the HMRC dashboard to check current service levels for post and online requests.
Get in touch
If you are currently awaiting a tax refund from HMRC which you would like to discuss further, please contact your usual PM+M representative or get in touch by emailing email@example.com.
HMRC is waiving late filing and late payment penalties for Self Assessment taxpayers for one month – giving them extra time, if they need it, to complete their 2020/21 tax return and pay any tax due. HMRC state that they recognise the pressure faced this year by Self Assessment taxpayers, and their agents, to meet their obligations due to COVID-19.
However, HMRC urge taxpayers to file and pay on time if they are able to, as the department reveals that, of the 12.2 million taxpayers who need to submit their tax return by 31 January 2022, almost 6.5 million have already done so.
The deadline to file and pay remains 31 January 2022.
The penalty waivers will mean that:
- Anyone who cannot file their return by the 31 January deadline will not receive a late filing penalty if they file online by 28 February
- Anyone who cannot pay their Self Assessment tax by the 31 January deadline will not receive a late payment penalty if they pay their tax in full, or set up a Time to Pay arrangement, by 1 April
Some points to note:
- Interest will be payable from 1 February, as usual, so it is still better to pay on time if possible
- Returns filed in February will be classed as late and HMRC will have an extended period to enquire into them
- The existing Time to Pay service allows any individual or business who needs it the option to spread their tax payments over time. Self Assessment taxpayers with up to £30,000 of tax debt are able to do this online once they have filed their return
- The 2020/21 tax return covers earnings and payments during the pandemic. Taxpayers must declare any grants or payments from the COVID-19 support schemes up to 5 April 2021 on their Self Assessment, as these are taxable, including:
- Self-Employment Income Support Scheme (SEISS)
- Coronavirus Job Retention Scheme (CJRS)
- Other COVID-19 grants and support payments such as self-isolation payments, local authority grants and those for the Eat Out to Help Out scheme
- The £500 one-off payment for working households receiving tax credits should not be reported in Self Assessment
We urge you, where possible, to still submit your return by the 31 January deadline, only using this penalty waiver if you really must and where there are reasonable grounds for you to be able to say that the return could not be submitted on time.
If you would like to discuss your specific situation in more detail, or need some help with your tax return, contact us as soon as possible by speaking to your PM+M adviser or by emailing firstname.lastname@example.org.
With the festive period behind us, and as we begin a new year, it means only one thing – the 31 January personal tax return deadline is rapidly approaching.
Your annual Self Assessment tax return can seem daunting, especially if it is your first one, however, by reading our basic tips and pointers below to help you prepare the return and avoid mistakes, it can be a simple process.
What is Self Assessment?
Self Assessment is the process of informing HMRC about your taxable income and gains for a tax year by completing a tax return. Tax is usually deducted automatically from wages, pensions, and some savings income, however, people and businesses with other income (including Covid-19 grants and support payments) must complete a Self Assessment tax return.
Do I need to complete a Self Assessment tax return?
You must submit a tax return if, in the last tax year (6 April 2020 to 5 April 2021), you were:
- Self employed as a ‘sole trader’ and earned more than £1,000 (before deducting anything on which you can claim tax relief)
- A partner in a business partnership
Usually, you will not need to submit a return if your only income is from your wages or pension. However, you may need to complete one if you have other untaxed income such as:
- Some COVID-19 grant or support payments
- Property rental income
- Tips and commission
- Income from savings, investments and dividends
- Foreign income
If you are still not sure, click here to visit the Gov.uk website and answer a few questions to check if you need to submit a Self Assessment tax return.
Self Assessment tax return deadlines
- Paper tax returns should have been submitted by midnight 31 October 2021
- Online tax returns are due by midnight 31 January 2022
- Pay the tax you owe by midnight 31 January 2022
What information do I need to complete my tax return?
- Ten-digit Unique Taxpayer Reference (UTR) – this will have been sent to you when you registered for Self Assessment or when you set up a limited company
- National insurance number
- Details of self-employment income and expenses
- Details of property income and expenses
- Employment and pensions income information, including forms P60, P11D and P45 from any jobs you have had
- Interest certificates from banks/building societies
- Details of pension and/or charity contributions which may be eligible for tax relief
- Details of dividends and other income
- Details of any chargeable capital gains made in the year
HMRC will calculate what you owe in tax based on the information which you report – remember, you must pay your bill by 31 January 2022.
Get in touch
Hopefully you are already on with or have completed your tax return for 2020/21. If you haven’t, or if you aren’t sure whether you need to submit a tax return, get in touch straight away to avoid missing the deadline and incurring penalties. Please speak to you usual PM+M adviser or get in touch by emailing email@example.com.