When Does My Tax Return Have to Be In? (Tax Return Guide)
Important deadlines for 2022
The deadline for filing self-assessment tax returns online is fast approaching. This includes those who are self-employed and want to claim expenses. For example, if you run a small business and use it to generate income, you must declare how much you earned and what you spent on running it. You’ll also have to report how much money you’ve received in dividends, interest and rent. And you’ll need to tell HM Revenue & Customs whether you’re liable to pay national insurance contributions.
If you haven’t filed your return by 31 January, HMRC will waive your £100 penalty. But if you don’t pay your tax bill within 10 days, you’ll be charged an additional penalty fee of £100 per month – up to a maximum of £2,400.
You might think that being late doesn’t matter because you won’t be penalised. However, there’s no grace period for paying your tax bill once you know you owe it. So, if you miss the deadline, you’ll still be fined.
HMRC will start charging interest on overdue accounts from April 2020. If you owe more than £10,000, HMRC could prosecute you.
28 February 2022
The deadline to make payments under the Tax Administration Act 2018 has passed. If you haven’t already done so, you’ll still be able to arrange a payment plan with HMRC. But there are some things you should know about setting up a payment plan.
If you’re struggling to meet your financial commitments, you might want to consider making a payment arrangement. This could help you avoid late penalties and interest charges.
You don’t need to wait until the end of the month to start arranging a payment plan. You can do it now. And you can use our online tool to work out how much money you owe.
Once you’ve worked out what you owe, you can choose whether to pay over several months or spread your payments out over 12 months.
But remember – you must pay within 28 days of agreeing to the terms of your payment plan. Otherwise, you risk incurring late fees.
And don’t forget – interest continues to accrue while you’re paying off your debt. So if you miss a payment, you’ll be charged a 5% penalty fee.
1 April 2022
The deadline for setting up a tax treaty partner agreement (TTP) with HMRC has been extended to 30 June 2021. This follows a decision taken by the European Commission in November 2018 to extend the deadline for setting up such agreements by one year, from 31 December 2020 to 30 September 2021. In addition, there are now penalties for failing to meet the deadline. These include a 5% late payment surcharge and interest charges.
HMRC says it wants to encourage businesses to enter into tax treaties because they benefit both sides. They say that having a TTP allows companies to access the benefits of double taxation relief (DTDR), which reduces the amount of taxes they pay overseas. Companies can also use DTDR to reduce the amount of UK corporation tax they owe. However, there are some exceptions to the rules around how much tax can be offset against each other. For example, dividends cannot be offset against profits.
If you’re thinking about entering into a TTP, here are some things to consider:
– A TTP isn’t compulsory – you don’t have to do anything
– There is no limit on the number of countries you can sign up to
– If you want to keep your existing arrangements, you can continue to work with your current TTP partners
– You must notify HMRC within three months of signing up to a new TTP
6 April 2022: first day of the new 2022-23 tax year
April : first day of the new tax year
Taxes are due next month. Are you prepared?
If you haven’t filed yet, you should definitely check out our guide to filling out the forms online here. You don’t want to miss out on getting your refund.
Make sure you’re ready for the new tax season before you start filling in the forms. We’ve put together some tips to help you prepare for the new tax year.
1. Check your bank account
2. Update your contact information
3. Review your financial situation
31 July 2022: second payment on account due
Self employed people need to make sure that they pay their annual taxes before midnight on 31 July. Otherwise, they face penalties. They also need to balance their accounts by 31 January each year. Failure to do so could mean they will miss out on refunds.
Balancing payments are made on the same day every year. This is because it ensures that selfemployed taxpayers have sufficient funds to cover the cost of paying income tax throughout 2018. If they don’t, they risk being fined.
To avoid penalties, you must submit your return no later than eight weeks after making the payment. You’ll also want to check whether you’ve paid the correct amount. If you haven’t, you might be able to claim a refund.
5 October 2022: register for self-assessment
If you haven’t filed a self-assessment income tax return since 2017, you’ll need to do it again by 5 October 2022. And if you’re planning to file online, you’ll need to activate your account before the deadline. Otherwise, you won’t receive your unique taxpayer reference number (UTR).
The good news is that it’s easy to update your personal information. You don’t even need to go to HMRC’s website. Simply log into My Account and follow the instructions there. Once you’ve done that, you’ll be able to start filing your next tax return.
31 October 2022: paper tax returns due
Paper tax returns are due by 30 June 2023. This includes those filed under the old system of filing quarterly, half yearly and annual returns.
The deadline for filing a paper tax return is 31 October 2022.
If you’re missing the deadline, you won’t be allowed to file an online tax form. You’ll have to submit a paper version.
You’ll need to pay fees for both the paper and electronic forms.
30 December 2022: opt into PAYE
The government has announced that it plans to introduce a new system for employers to automatically deduct income tax from employees’ wages. From January 2021, workers will no longer be able to claim back National Insurance contributions (NICs) paid for them by their employer. Instead, employees will receive a monthly payment based on how much NICs they are entitled to. Employers will still be required to make quarterly payments to HMRC.
The government says there will be “no change to the amount of NI payable”. But the Treasury estimates that the move will cost employers around £1bn each year.
Employees earning up to £2,500 a month will continue to be eligible for the state pension and Universal Credit. Those earning more than £2,500 a week will continue to be covered by the state pension.
Those who do not work will continue to be exempt from paying any NICs. They will also continue to be eligible for free school meals and free prescriptions.
However, anyone who earns less than £3,000 a year will lose out. They will no longer be eligible for Child Benefit, Working Tax Credits or Housing Benefit.
And those who have already filed a self assessment tax return for 2020/21 will not be affected.
Fines for late tax returns
There are different ways to avoid paying late fees. Some people choose to file their taxes early, while others use software to help them prepare their taxes.
How to file your tax return for 2021–22
HM Revenue & Customs (HMRC) is urging people who want to file their taxes early next year to register now. This includes those who use the post or online method – there is no difference in terms of what information needs to be submitted. However, the deadline to submit your return via the online system is January 31st 2021, while it’s February 28th for post submissions. If you’re unsure how to complete your tax return, here are some tips…
Online filing
If you’d like to file your return online, you’ll need to download the relevant software from HMRC’s website. Once downloaded, log into your account and follow the instructions. You’ll need to provide details such as your name, address, National Insurance number, bank details, contact numbers and email addresses.
Postal filing
You can also choose to file your tax return by postal mail. To do this, you’ll need to print off a form called Form 8453 and send it to HMRC along with your payment. You can find out more about the process here.
The deadline to file your return via the post is April 15th 2020.
What if I have many years worth of tax returns to complete?
If you are still working on completing your tax return for 2018/19, there is no reason why you cannot continue doing so into next year. However, it is important that you know what deadlines apply to you, and how long it could take to complete.
HMRC has recently announced that anyone who has not filed their tax return for 2018/2019 by 31 January 2020 will face penalties. This includes those who have already submitted their return, and those whose deadline has passed.
The deadline for filing a return for 2018/2019 is 31 January 2020. You do not need to submit a return if you have already done so. However, if you have not completed your return by this date, HMRC will assess a penalty against you.
You must notify HMRC within 28 days of receiving a notice of assessment. Failure to do so will mean that the penalty will be added to your existing debt.
This applies to both individuals and businesses.
For further information, please call our helpline on 0800 328 5999.
If I don’t send in my Tax Return, what will happen?
If you receive a letter telling you that you must file a tax return within 28 days, you are probably being sent one because you haven’t filed one in the previous three years. You’re also likely to be told that you won’t be able to claim certain benefits unless you do. But what if you’ve never had to file a tax return before? What if you think that you don’t owe any taxes?
You’re not alone – there are millions of people like you across Britain. And although some of us know we shouldn’t be surprised about having to pay our fair share of tax, many others are shocked by the news. So how do you handle receiving a demand for a tax return? Here’s everything you need to know…
Frequently Asked Questions
Do I need to fill out a Tax Return for Self Assessment?
Most people in the UK pay most of their tax ‘at the source’, for example, through Pay as You Earn (PAYE). This means that they do not have to file a tax return and there is no requirement to keep records. However, some people choose to take advantage of the self assessment process, which allows individuals to calculate how much tax they owe each month.
If you are a sole trader or work for yourself, you are likely to be able to use PAYE. If you are a partner in a limited company, you will usually be expected to complete a personal tax return.
There are exceptions though. For instance, if you are a member of a religious body, such as a Christian church or mosque, you might qualify for exemption under section 18A of VAT Act 1994.
You may also be exempt if you are a trustee or executor of an estate, or a minister of religion.
In addition, if you are a single person earning less than £10,000 per annum you can claim a refund of National Insurance contributions paid.
What do I do if I no longer need to complete a tax return?
If you no longer need to file a tax return, you can inform HM Revenue & Customs (HMRC). But make sure you are completely up to date with your tax affairs before contacting them.
You can contact HMRC using GOV.UK. You can use the online form to request to cancel a tax return, or to say why you no longer need one. If you want to cancel a return, you must send them a letter explaining why.
If you have already received a return for a previous year, HMRC might decide to cancel it if they believe you no longer owe money. To cancel a return, call HMRC on 0300 123 5000. Tell them how much tax you owe and what happened to change your situation.
HMRC will usually accept that you no longer owe tax if you have been paying tax under PAYE, even if you have not filed a return for some years. However, if you have been receiving a benefit, such as Jobseeker’s Allowance, Income Support or Universal Credit, you should still file a tax return every year.
If HMRC do not agree to cancel the return, they might ask you to complete it and provide additional information in the Additional Information box. This could mean you receive a notice telling you that you have failed to meet certain obligations, such as meeting the £1,060 threshold for self-employed people.
In exceptional cases, HMRC might agree that you don’t need to complete a tax returns. Instead, they might issue you with a Simple Return, which does not require you to fill out a full tax return.
