2020 Self Assessment Tax Returns

2020 Self Assessment tax returns for the year ended 5th April 2020 are due into  HMRC by paper by 31 October 2020 and by electronic submission by 31 January 2021.

Clients should act as soon as practicable to meet the 31st January 2021 deadline. Experience shows that delaying getting the tax reporting exercise underway until the end of the calendar year when Christmas and New Year holidays dominate, can lead to people having to scratch around to find an accountant with time and resource to spare.... 

Clients must remember:

• It takes about 10 days to register an accountant as a tax agent with HMRC.
• The 31st January deadline is absolute. Fines of £100 are automatically raised for missing that date.
• Scope for mitigation of the £100 late filing penalty is much reduced and experience from the last tax year show that HMRC are increasing the use of penalties in all areas of tax, in order to get taxpayer compliance.  Remember:
  • Appeal against the £100 fine for a late return will only win in exceptional circumstances.
  • Late filing penalties for a paper return will accrue at £10 per day  from 1 May 2020 up to £900 where a return is more than 3 months late.
  • Over 6 months late and there are more penalties...  up to £1,600 in total plus a percentage of any tax due.
• Late payment of income tax is also set to become more expensive with a penalty of 5% of the tax due being levied at each of the following milestones:
  • 30 days late
  • Six months late.
  • Twelve months late.
• To illustrate the above, a taxpayer owing £5,000 in tax, filing and paying 12 months late, could end up paying a total of £7,600 in settlement of their liabilities.  A sobering thought.

...so the message is clear, act now to prevent spoiling your Xmas and New Year holiday with tax filing worries; but most of all, don't expose yourself to HMRC penalties.

 Paul Monaghan's fixed price tax return work starts from £150 for an online self assessment return.  We are a state-of-the-art paperless practice that relishes the fast, online filing regime now in place with HMRC.

For a free consultation, phone Paul on 01895 473824.

 

We service clients in the Middlesex, South Buck and West London areas, including: Uxbridge, Hillingdon, Ickenham, Ruislip, Eastcote, Hayes, Harefield, Northwood, Cowley, West Drayton, Denham, Iver, Gerrards Cross Buckinghamshire ....and all surrounding districts. Call 01895 473 824 for a no-obligation free initial consultation.

We are advisors and consultants offering advice in all tax and accounting matters including: Business Tax, Personal Tax, Individual Taxes, "Self Assessment" tax returns, accounting, payroll, book keeping, bookkeeping, Management Consultancy, Corporation Tax, VAT, PAYE, NIC, CIS, IR35, CT600, Inheritance Tax, IHT, and others.