With the January 31st deadline just around the corner and the risk of penalisation looming for any late filers, have you submitted yours yet?

What happens if I do not submit my tax return by the deadline?

Failure to submit your 2020-21 tax return will incur an automatic fine of £100, applicable for any late returns within 3 months. After this, daily penalties of £10 can be levied for up to 90 days. This would amount to up to £1000, plus any surcharges for late payment of the tax liability, which can be significant. Penalties continue to rise after this date.

What do I need to submit my tax returns?

Most company directors, sole traders, high earners, landlords, investors, and overseas taxpayers must submit a tax return. Additionally, those disposing of assets may be liable to tax if there has been a gain or loss incurred.

Whether you choose to submit your own tax return or appoint an accredited professional, you will need:

  • Your 10-digit Unique Taxpayer Reference (UTR)
  • National Insurance number
  • Details of your taxable income for the tax year (for example income from self-employment, interest received , dividends, and rental income)
  • Records of any expenses relating to self-employment
  • Contributions to charity or pensions which might be eligible for tax relief
  • P60 or other records showing how much income you received that you’ve already paid tax on
  • Details of any gains or losses on asset disposals

If you received the third SEISS grant, which is subject to Income Tax and self-employed National Insurance contributions, the amount you received should be recorded on your tax return for consideration.

Please note – the CJRS (Coronavirus Job Retention Scheme), Furlough support, and Self-Employment Income Support Grants are no longer available. 

Be aware – HMRC has issued an official warning reminding people to be extra vigilant in the run up to the deadline as this is a prime time for fraudsters and scammers to target their victims, posing as HMRC or other bodies. To know what to look out for when it comes to fraudsters, click here.

How can I get help with my tax return?

The Government’s website provides introductory guidance on submitting a self-assessment tax return for those who wish to submit it themselves. For those who require help submitting, HMRC advise you to appoint an accredited accountant who can navigate any complexities and ensure accuracy, providing you with complete peace of mind.

How we can help

Here at PKF Smith Cooper, we have a large personal tax team who have the capacity to assist ahead of the January deadline. We take the time to understand our clients and their families, combining expertise, experience, and market knowledge, whilst implementing strategies that ensure our clients financial affairs are suitably cared for.

Although we set a deadline of November 30th by which to receive tax returns, there is limited scope for us to receive your tax returns all the way up until 24th December. However, it should be noted that there is no guarantee that our tax team will be able to aid anyone submitting after the 30th November.

If you are yet to submit a tax return or would like any advice on any aspect of Self-Assessment, please get in touch today. We will endeavour to ensure that your tax return will be submitted accurately and on time, providing you send us all necessary information in a comprehensible manner by 24th December 2021.