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    Tag: Tax Return

    600,000 people miss Self Assessment tax return deadline

    Posted on by Rebecca Campbell

    According to HMRC, 600,000 taxpayers missed the submission deadline for 2021/22 income tax Self Assessment on 31 January.

    If you are one those who is yet to submit their tax return, don’t delay! We recommend submitting your income tax Self Assessment as soon as possible. Although you will still incur the initial £100 fixed penalty, if you delay until the end of February, an automatic 5% penalty will be applied after 30 days (effectively by midnight on 2 March 2023) on any outstanding tax which remains unpaid. Additional 5% penalties can be applied on any tax which is still owed after 6 months and again after 12 months.

    Latest statistics from HMRC show that in the period from April 2022 to December 2022, penalty revenues of £529 million were raised across all taxes and duties. A 27% increase from the same period a year prior, and a 72% increase in penalty revenues from the same period two years previous.

    The ongoing cost of living crisis and rising interest rates to tackle inflation mean that HMRC may see penalty revenues grow even further over the coming months, with late payment interest due to rise from 6% to 6.5% on 21 February 2023.

    If you are unable to pay your tax bill, engaging with HMRC and a trusted tax adviser as early as possible is beneficial and offers the best chance of mitigating financial penalties.  There are options available for taxpayers to explore including ‘time to pay’ arrangements to avoid accruing additional penalties, however, late payment interest will still be charged.

    Get in touch

    If you haven’t submitted your tax return for 2021/22, and need help or advice to avoid incurring further penalties, please speak to your usual PM+M adviser or get in touch by emailing enquiries@pmm.co.uk.

    5.7 million people still to file their tax return – have you filed yours?

    Posted on by Rebecca Campbell

    HMRC have recently reported that of 12 million taxpayers who have to file a tax return for the 2021/22 tax year, just under half still need to do so before the 31 January deadline.

    Now the festive period is over, and we begin a new year – time is running out to meet the deadline, as unlike previous years, HMRC is not likely to waive late-filing penalties, and the late payment interest is set to rise too.

    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 pension payments, property letting and Capital Gains Tax on the sale of assets like shares or a second home) 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 2021 to 5 April 2022), 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
    • You earned £100,000 or more

    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 2022
    • 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  – if you haven’t got one, you need to register ASAP online by clicking here
    • 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 Gift Aid 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 2021/22.  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 enquiries@pmm.co.uk.

     

    Self-assessment: less than 100 days to go until tax deadline

    Posted on by Rebecca Campbell

    With less than 100 days to go until the deadline for online returns (31 January 2023), and 5 days until the deadline for paper returns (31 October 2022), there’s no time like the present to complete your tax return.

    Sending your return early comes with the benefit of knowing what you owe so you can budget to make the payment by 31‌ January 2023, and if you need to look at the range of payment options available, filing early allows you to enter a payment plan in good time. Any repayments which may be due can also be claimed early.

    Unsure if you need to file a self-assessment tax return?

    You must file a self-assessment return if, in the last tax year, you were:

    • self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on)
    • a partner in a business partnership

    You will not usually need to send a return if your only income is from your wages or pension. But you may need to send one if you have any other untaxed income, such as:

    If you are still unsure if you need to file a return, you can use the HM Revenue and customs check service by clicking here.

    Get in touch

    For further advice or help with completing your 2021/22 self-assessment tax return, please contact Julie Walsh by using the button below.

    Have you completed your Self Assessment tax return?

    Posted on by Rebecca Campbell

    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 enquiries@pmm.co.uk.