Personal Tax Return Deadline
It’s tax return season for us at Smarter Accounting and SELF ASSESSMENT tax returns are currently being completed ahead of the January 31 deadline. According to the HMRC, millions of people are yet to file self-assessment tax return as the deadline nears so if you have not yet filed your return, then the time to act is now to avoid penalties!
If you’re one of the millions who were told by their employer not to come into the office, don’t forget that you can claim tax relief worth up to £125 a year for working from home. Because the first lockdown began on 23 March 2020, the pandemic takes in two tax years: 2019-20 (the last two weeks) and 2020-21.
If you do a self-assessment form, you must claim this as an expense on your tax return (working from home should be included in the “other expenses and capital allowances” box). And, crucially, you will only be able to claim for up to and including 5 April 2020 on the 2019-20 return. You will have to wait for 2020-21 form to claim for working from home after that date.
So who needs to do a tax return?
Broadly, it’s if any of these apply:
• you are a self-employed sole trader whose annual turnover is more than £1,000;
• you earned more than £2,500 renting out property;
• you, or your partner, received child benefit and either of you had an annual income of more than £50,000;
• you received more than £2,500 in other untaxed income, for example from tips or commission, or dividend income, or an employee claiming expenses totalling more than £2,500;
• you earn more than £100,000 a year; or you earned income from abroad that you need to pay tax on.
Don’t worry, if you’re an EXISTING client of Smarter Accounting and we already have your records, rest assured, we are working on your behalf. If you have not yet sent your records to us, then please do so without delay.
If you’re NOT a client of Smarter Accounting and you are yet to file your 2019/20 Tax Return, then we can still help, please contact us!
For the millions of people who will complete the Self Assessment return, there are a number of important matters to consider when you gather the relevant paperwork together. Some of the Government’s Coronavirus Grants (e.g. Self Employment Income Support Grant) being based on filed tax return data 2018/19 and previous returns have been used to calculate sums due, filing on time for 2019/20 could become crucially important.
Don’t Delay, Get Onto It Today! Please contact us if you’d like any further information.