The Self Assessment tax return online filing deadline for the tax year ended 5April 2021 is on 31 January 2022.
According to HMRC reports some 1.8m people filed their returns late in January 2021, a record high number. HMRC waived all penalties last year for late returns submitted by 28 February 2021 due to the coronavirus pandemic. However, this year any return filed even a minute after midnight on 31 January 2022 will be subject to a penalty.
If you still haven’t filed your Self Assessment tax return after three months,you’ll face additional daily penalties of £10 per day for up to 90 days(maximum £900). Should your return be over 6 months late (i.e. after 31 July2022) you would face a further penalty of £300 or 5% of the tax if this is greater.The penalties will increase again by a further £300 or 5% of the tax due if this is greater after 12 months (i.e. 31 January 2022).
In addition to the late filing penalties there are also penalties for late payment of any tax due under self assessment. The penalties for late payment of any tax liability is 5% of the tax due when 30 days late, 6 months late and 12 month slate.
We always recommend clients prepare their tax return as early as possible after the end of the tax year not only to avoid these penalties but to enable sufficient time to plan for any tax liability. Giving yourself plenty of time can also enable you to ensure you include all relevant information and reduces the risk of errors and omissions.
However,if you have not been organised this year there is still time to get your records together and return submitted before the deadline. The process of preparing your business records for your accountant may seem daunting but is a lot simpler than you think.
For the self employed the vast majority of the trading information will be obtainable from the business bank statements alone. Your accountant will also require sales invoices, purchase invoices, expense receipts and potentially other information depending on your size and trade.
With Making Tax Digital fast approaching though we would recommend moving over to online bookkeeping software. This enables you to keep data about your sales and purchases in one place directly from your bank to your books, so all your records are automatically in one place. This will also ensure you are compliant in advance of the new legislation coming into place.
It is also important not to forget the self assessment return is not just for self employed income, all income should be included. Other information to consider when providing your accountant with your records includes: