Important tax deadline approaching fast
With all the focus on the forthcoming Budget this month, it is easy to forget that 31 October is a key tax deadline in the annual calendar. What is it, and what are the consequences of missing it?
The deadline for filing the annual tax return is 31 January. Everyone knows that - after all, that's the month all the reminder adverts start appearing in the media. However, the 31 January deadline only applies to returns that are submitted electronically. Unlike companies, individuals can still fill in a paper return and submit it to HMRC. The only problem is that the corresponding deadline is three months earlier, i.e. 31 October. If this is missed, a £100 penalty will be applied. Of course, this can be avoided by submitting an electronic return before 31 January, but for some people this isn't practical. For example, they may not have access to a computer.
In some circumstances, a return is incapable of being accepted electronically due to HMRC's system. In these instances a paper return is the only option, and an extended deadline of 31 January applies. A late filing penalty would initially be charged, but known issues will be accepted as a reasonable excuse upon appeal. A list of current issues is availaible for 2020/21.
Related Topics
-
HMRC takes aim at side hustles
People with side hustles are the target of a HMRC press release reminding them of their potential tax obligations. Why has this been published now, and what are the key points to remember?
-
Can sale with no goodwill charge still qualify as TOGC?
You are selling an unprofitable part of your business but the sale does not include any charge for goodwill due to trading losses. Can the sale still qualify as the transfer of a going concern and what conditions must you meet?
-
VAT on electricity to be cut
The new Prime Minister has announced a cut to the rate of VAT on electricity from 1 October. What's the full story?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.