Less Than One Month To Go Until The Self Assessment Deadline
Image by Steve Buissinne
If you submit a paper tax return then it’s important to start the process now, as the deadline to file your 2020 to 2021 figures and pay anything owed to HMRC is October 31.
While this might seem like plenty of time, gathering all of the relevant documents can be a slow process, especially if you’ve faced disruption to your work thanks to COVID-19. Anyone who misses the deadline of October 31 faces a £100 fine.
James Andrews, senior personal finance expert at money.co.uk, said:
“We all know that one of the main drawbacks of being self-employed, quite apart from fluctuating income month to month and year to year, is being forced to report your income and pay tax to HMRC.
“Anyone submitting their tax return online has until the new year, however, if you want to submit a paper tax return then the self assessment deadline is October 31, meaning you must start the process now to make sure you don’t hit a delay.
“Firstly, download and print out the 2021 SA100 tax return form from the government website here. To complete it, you’ll need to gather all the relevant paperwork and documents, which can include your P60, P45, P11D or a P9D. You might also need to provide a summary of any rental income and expenses or statements of earnings from savings and investment.
“You can send what you owe to HMRC by bank transfer, cheque through the post or in your bank by using a slip that HMRC will provide. If you want to spread your payments over time, you can use a budget payment plan, which you can find out more about on the government website here. Remember that you can no longer pay your tax bill by credit card.
“Once you have filled out your form and arranged payment, return it to the HMRC self assessment centre before the deadline on October 31.
“If you miss the deadline for submitting your self assessment tax return or paying your bill, you will be charged a penalty of £100. If it is more than three months late, you could be charged an extra £10 a day up to a maximum of £900. You can estimate your penalty using this government tool.
“If you’re still unsure about self assessment and how the process works, be sure to read money.co.uk
’s comprehensive guide here: https://www.money.co.uk/guides/a-beginners-guide-to-self-assessment.htm.”