Get your tax in order
With less than a month to complete self-assessments, 55% of HMRC customers have already submitted their returns. As the deadline approaches, will HMRC take a lenient stance towards COVID hit taxpayers who will fail to meet it?
No extension to SA submission dates – as yet
The third national lockdown piled further pressure on freelancers and SMEs to stay afloat. Although many couldn’t provide financial information to their accountants due to the new restrictions, or illness, the HMRC has so far resisted the calls to delay the 31st January deadline.
Beware of scammers and fake sites
The pandemic has led to a massive rise in the phone and online fraud, from copycat HMRC websites to text messages and phone calls offering tax refunds or demanding tax payments. With over 300,000 phone scams reports last year, taxpayers are urged to be extra diligent when sharing sensitive financial information.
File the return with estimates
This option will be accepted by HMRC, however, it will require additional work to amend the return later.
Apply online for time to pay
Those with a tax bill of £30,000 or less, and who don’t have any other payment plans or debts with HMRC, can apply for a time to pay over 12 months. They will, though, face additional interest payments if they opt in.
Negotiate time to pay
If your self-assessment liability is more than £30,000 or a period longer than 12 months is required, speak to HMRC to negotiate payment arrangements.
Late filing penalty
If you are worried about your tax bill, contact HMRC before the deadline. Covid-19 will be accepted as a reasonable excuse and may result in waving some late tax payment fines.
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