Tax returns filing deadline is fast approaching

The approaching deadline for submitting 2019-20 Self-Assessment tax returns online is 23:59 on Sunday, 31 January 2021. The filing deadline is not just the final date for submission of your Self-Assessment tax return but also an important date for payment off tax due to HMRC. This includes the payment of any balance of Self-Assessment liability for the 2019-20 plus the first payment on account due for the current 2020-21 tax year. The 31 January 2021 is also the payment date for any CGT due on residential property sales made during the 2019-20 tax year before the rules changed on 6 April 2020.

HMRC has published a press release to remind taxpayers to submit their tax return as soon as possible and also shared the following little-known facts about Self-Assessment tax returns:

  • 96,519 people filed their tax return on 6 April 2020 (first day of the tax year)
  • it’s the 20th anniversary of Self-Assessment internet filing, the service began on 3 July 2000 – with 38,000 individuals successfully sending their digital tax return by 31 January 2001.
  • in January 2011, 3.4 million taxpayers completed a Self-Assessment tax return online – this has increased to an estimated 5 million in January 2021.
  • this year’s deadline (31 January 2021) is on a Sunday. The last time the deadline was on a Sunday was in 2016.
  • last year, the busiest filing day was 31 January with 702,171 returns completed.
  • the peak hour for filing last year was between 16:00 to 16:59 on 31 January when 56,969 customers filed.
  • HMRC has increased the self-serve Time to Pay threshold to £30,000 to help Self-Assessment customers spread the cost of their tax bill.

If you miss the filing deadline then you will usually be charged a £100 fixed penalty although pandemic-related issues may count as a ‘reasonable excuse’ for late filing. 

There are also options to defer payments due on 31 January 2021 and pay by instalments over 12 months. This includes a self-serve Time to Pay facility online for debts up to £30,000 or by making an arrangement with HMRC. You will be required to pay interest on any outstanding balance from 1 February 2021.

Source: HM Revenue & Customs Wed, 20 Jan 2021 00:00:00 +0100

Latest articles

CGT during divorce or separation

If you are part of a couple that is about to separate or divorce, apart from the emotional stress, there are also tax issues that can have significant implications. Whilst this is unlikely to be uppermost in your mind it is important that the tax

Taxpayers who return to the UK

There are tax implications that you will need to consider if you previously left the UK to live abroad and are now either returning to live and work in the UK or are considering such a move.

In most cases, if you have returned to live in the UK you

Corporation Tax – marginal relief from 1 April 2023

The Corporation Tax main rate will increase to 25% from 1 April 2023 for companies with profits over £250,000. A Small Profits Rate (SPR) of 19% will also be introduced from the same date for companies with profits of up to £50,000 ensuring these

Claiming Child Trust Fund cash

HMRC has published their latest statistics on Child Trust Funds which reveal that whilst 320,000 accounts have now matured, 175,000 funds that have matured remain unclaimed.

If you turned 18 on or after 1 September 2020 there may be cash waiting for