We wanted to run through the requirements for the self-assessment tax return 2021/22, it’s a good reminder for everyone and particularly useful for any businesses that are submitting their tax return for the first time this financial year.
This applies to the tax year which started on 6 April 2020 and ended on 5 April 2021.
Who needs to submit a tax return?
You must submit a tax if, in the last tax year (6 April to 5 April), you were:
self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on)
a partner in a business partnership
If your only income is from wages or pension, then you don’t usually submit a tax return but you may need to if you received income via one of these routes:
Some of the COVID19 grants of support payments
Income generated from renting out a property
Any tips and commission made during the year
Income from savings, investments, and dividends
Any foreign income received this year
What are the deadlines?
All online tax returns must be submitted to the HMRC by midnight on 31 January 2022.
The deadlines for paying your tax bill are usually:
31 January - for any tax you owe for the previous tax year (known as a balancing payment) and your first payment on account
31 July for your second payment on account
It is important that you have the funds available to pay any tax liabilities on this date. If you will struggle to make the payment in full on that date, then it’s worth setting up a payment plan as soon as possible. You can either call HMRC or have a look at this article which explains how to set up a Budget Payment Plan Online.
What are the penalties?
If you submit your tax return late then you will get a penalty. The late filing penalty is £100 if your tax return is up to 3 months late. This fine goes up the later the filing is made.
In addition, you will be charged interest on late payments.
If you already know that you will be filing your tax return late or you will not be able to pay your tax liabilities in time you can estimate the amount of penalty that you will receive. Click on this link to find out more – Estimate your penalty for late self-assessment tax returns and payments.
We are currently supporting our clients with their tax returns, if you would like us to help you then we advise that you contact us as soon as possible. If you know you will be filing your tax return late and want some advice, then again please do give us a call on 0115 956 9452 or email info@marshallsmalley.com