Tax returns and Covid
Well one thing has not changed because of Covid. The deadline for online filing of your personal tax return is still 31st January 2021, just over 6 weeks away. If you still must file, my accountancy practice Baxterworld, may be able to help. We have a few slots still available for new Clients.
If you file the return late, there is a basic penalty of £100 and if you pay your bill late there are further penalties. For example, if you file your return and pay a £10,000 bill on 2 March 2021, the bill for penalties and interest will be £120. However, if you pay a day later on 3 March an extra £500 kicks in for late payment because it is 30 days late and it will cost you £621. You can calculate the cost for different dates and amounts here https://www.gov.uk/estimate-self-assessment-penalties
There is one small concession because of Covid. If you did not make a self-assessment payment on account due in July 2020, then provided it is paid by 31st January 2021, you will not have to pay a penalty.
If you are not able to pay your tax and you meet these conditions:
- You owe £30k or less
- You do not have any other payment plans with HMRC
- Your tax returns are up to date
- It is less than 60 days after the deadline
….then, you can set up a payment plan online here, no need to contact HMRC:
If you need some help, don’t delay, and give me a call.
Ray can be contacted on 07803 624 748 or ray@ Baxterworld.com