To submit or not to submit, when, that is the question!
With the number of announcements from HMRC this year, you could be forgiven for being confused about when your tax return needs to be submitted. Well, the bad news is the deadline for online self-assessment tax returns is 31st January 2021. But the good news is you’ll get longer to pay! More good news is that right now, we’re offering to sort out your tax return for just £350! Better still is that this charge is an allowable expense!
In this most unusual of years, I’m sure that making ends meet has been more of a priority than ensuring you have money put aside for paying your taxes. However, that makes it even more important to avoid any penalties especially when work and income may have been significantly impacted.
Understanding your taxes
“The hardest thing in the world to understand is the income tax”.
If that’s how you feel, then you’re in good company as they are the words of Albert Einstein. How reassuring to know that even a genius could find taxes confusing. Although I’m sure he had a very efficient accountant to help him with that conundrum! Essentially, you can pay tax through self-assessment if you’re self-employed or through Pay As You Earn (PAYE) if you have an employer or both. If you’re self-employed, you must have registered yourself with HMRC by six months before the end of the tax year (i.e. October).
Rest assured, we understand everything there is to know about taxes and VAT. Even if you’re completing a self-assessment as a limited company director, we can help you with any complexities this may bring.
Self-assessment means that you (or your accountant) will have to complete a tax return for the year ending on April 5th and submit it before 31st January of the following year. If you don’t, you’ll face an immediate penalty of £100 and any further delays will bring further penalties.
Changes in UK taxes due to the Coronavirus
1. Enhanced Time to Pay for Self-Assessment taxpayers
On 24th September 2020, as part of his Winter Economy Plan, the Chancellor Rishi Sunak announced an Enhanced Time to Pay for self-assessment taxpayers. Meaning that self-assessment customers could pay their deferred payment on account bill from July 2020, any outstanding tax owed for 2019 to 2020, and their first payment on account bill for this current tax year in monthly instalments, up to 12 months, via the online payment plan service.
This means that the self-employed and other taxpayers have more time to pay taxes due in January 2021. Building on the deferral provided in July 2020, any taxpayers with up to £30,000 of self-assessment liabilities due will be able to use HMRC’s self-service Time to Pay facility to secure a plan to pay over an additional 12 months. As a result, self-assessment liabilities due in July 2020 will not need to be paid in full until January 2022.
However, there are some requirements such as, not having any outstanding tax returns or tax debts or any other HMRC payment plans set up. This facility does incur interest which will be applied to any outstanding balance from 1st February 2021.
2. Deferred VAT – New Payment Scheme
The government has also announced it will give taxpayers who deferred VAT payments between 20th March 2020 and 30th June 2020 the option to spread their payments over 11 interest-free payments in the financial year 2021-2022. This means that VAT liabilities due between 20th March and 30th June 2020 will now need to be paid by 31st March 2022. If you took advantage of the VAT deferral you will be eligible to use the New Payment Scheme but you will need to opt-in once HMRC have put a process in place in early 2021.
We can ensure you don’t incur penalties and only ever pay what you owe. We’ll take care of every aspect of your tax and VAT including liaising with HMRC on your behalf. Rather than worrying about whether or not you’ll meet the deadline, why not take advantage of our current offer to sort out your tax return for just £350. What a genius idea! Our team of accountants are specialists in the world of sports and media and understand the complexities of your taxes at whatever stage you’re at in your career – whether you need help filing taxes as an actor, or knowing what expenses to claim as a YouTuber, we will be there.
To find out more about how we can help you to keep more of the income you earn contact The Showbiz Accountant for a free initial consultation on 0203 384 2224 or at info@showbizaccountant.com.
