Tax deadline reprieve due to Covid-19 – what does it mean?
The Covid-19 pandemic has caused many changes to the way we work, along with adding pressures such as unaccustomed working from home, homeschooling, and isolating, to name but a few.
To help with this, HMRC announced on 25th January 2021 that the deadline for filing the 2019/20 return would be postponed from 31st January to 28th February on this occasion. If you have not yet submitted it, bear in mind as we approach the middle of February that interest is still mounting up on any amount owing, so you have an incentive to do so as soon as possible.
After 28th February the £100 late filing penalty becomes due in the usual way, plus interest, and after three more months a higher rate will be charged. There is more detail about paying your tax bill here: https://www.gov.uk/pay-self-assessment-tax-bill
If you are up to date with past payments and have filed your 2019/20 return, you may be able to pay the tax owing in instalments: https://www.gov.uk/pay-self-assessment-tax-bill/pay-in-instalments
If you were required to pay tax on account for tax year 2020/21, the first payment on account was due on 31st January , and you need to pay this as soon as possible. The second payment on account will be due on 31st July 2021. What’s more, if you delayed making a payment on account in July 2020 because of Covid-19, this will be added to your tax bill due by 31st January 2021. There is more information about payment on account here: https://www.gov.uk/pay-self-assessment-tax-bill/pay-in-instalments
And one more thing: some people with limited companies are unaware that they are also required to submit a personal self-assessment return as well!
If this article has made you realise that you need to get to grips with your accounting software, or start using it, Jason is very approachable and happy to advise you. He uses all of the major packages. He can also help you with your regular accounting – why not book a discovery call with him?
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