Tag: Self Assessment

Get your Self Assessment wrapped up in time for Christmas

With Christmas nearly here, HM Revenue and Customs (HMRC) is encouraging Self Assessment customers to put their tax return at the top of their to-do list.

Last year more than 2,800 customers chose to file their tax return on Christmas Day. But those who get their 2021 to 2022 Self Assessment wrapped up before Christmas can tick it off and enjoy the festivities. 

Self Assessment customers need to complete their tax return and pay any tax owed by the 31 January 2023 deadline or risk having to pay a penalty. Those who file their return before 30 December may also have the option of paying any tax owed through their PAYE tax code.

Filing early means if customers owe money, they have plenty of time to explore which of the payment options available is best for them by visiting GOV.UK. Customers should include their bank account details so that if HMRC needs to repay them it can be done quickly and securely.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We are encouraging customers to plan their Self Assessment as they’d plan for Christmas – get organised, complete their to-do list with plenty of time to avoid that last minute rush. Just search ‘self assessment’ on GOV.UK to make a start.”

The easiest and quickest way to complete a tax return is online through a Personal Tax Account where customers can start their return and go back to it as many times as they need before submitting it. 

To make it even simpler, customers can now use the free and secure HMRC app to get their Unique Taxpayer Reference (UTR), make Self Assessment payments and obtain their National Insurance number and employment history . 

HMRC has a wide range of resources to help customers complete their tax return, including guidance, webinars and YouTube videos.

Customers need to be aware of the risk of scams as criminals use Self Assessment as an opportunity to commit fraud. Customers must never share their HMRC login details as criminals use them to steal or make a fraudulent claim. Customers should check HMRC’s scams advice on GOV.UK

Find out more about Self Assessment.

Online payment plans help almost 21,600 customers pay their Self Assessment bill

Since 6 April 2022, almost 21,600 Self Assessment customers, who were unable to pay their tax bill in full, have set up a payment plan to spread the cost into manageable monthly instalments – an increase of around 3,900 customers on the previous year – HM Revenue and Customs (HMRC) has revealed.

The deadline for customers to submit their tax returns for the 2021 to 2022 tax year and pay any tax owed is 31 January 2023 and HMRC is encouraging anyone yet to complete their return to do it early. Those who have already completed their Self Assessment know what they owe and can budget to make payments on time.

Filing early also means customers, who are unable to pay their tax bill in full by the deadline, will have plenty of time to access support and advice on GOV.UK. HMRC may be able to help by arranging an affordable payment plan.

Visit GOV.UK to find out more about Time to Pay arrangements.

In the 12 months to 5 April 2022, almost 142,000 customers chose to use self-serve Time to Pay to pay any tax owed for the 2020 to 2021 tax year, spreading the cost of around £475 million into monthly instalments.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We’re here to help customers get their tax right and if you are worried about how to pay your Self Assessment bill, help and support is available. Visit GOV.UK and search ‘help pay Self Assessment’ to find out more.”

Using HMRC’s self-serve Time to Pay facility means customers benefit from a tailored payment plan via monthly direct debits.

This means they can spread the cost of their tax bill based on how much is owed and the length of time they need to pay. Self Assessment customers can apply on GOV.UK if they:

·         have filed their tax return for the 2021 to 2022 tax year

·         owe less than £30,000

·         can pay in full within 12 months

If customers owe more than £30,000, or need longer to pay, they should call the Self Assessment Payment Helpline on 0300 200 3822.

A list of alternative payment options, including payment via the free and secure HMRC App, are available on GOV.UK.

A full list of payment options and eligibility criteria is available on GOV.UK by searching ‘HMRC payment option’.

Help and support is available on GOV.UK for those completing their Self Assessment tax returns. There is also a series of videos on YouTube.

All Self Assessment customers need to be alert to the risk of criminals emailing, calling or texting claiming to be from HMRC. Scams come in many forms – some threaten immediate arrest for tax evasion, others offer a tax rebate.

Contacts like these should set alarm bells ringing and HMRC advises customers to take their time and check scams advice by searching for ‘HMRC scams’ on GOV.UK. HMRC also urges customers never to share their HMRC login details. Someone using them could steal from the customer or make a fraudulent claim in their name.

HMRC: Self Assessment – don’t forget to declare COVID-19 payments

HM Revenue and Customs (HMRC) is reminding Self Assessment customers that they must declare COVID-19 payments in their tax return for the 2021 to 2022 tax year.

More than 2.9 million people claimed at least one Self-Employment Income Support Scheme (SEISS) payment up to 5 April 2022. These grants are taxable and should be declared on tax returns for the 2021 to 2022 tax year before the deadline on 31 January 2023.

The SEISS application and payment windows during the 2021 to 2022 tax year were:

·         SEISS 4: 22 April 2021 to 1 June 2021

·         SEISS 5: 29 July 2021 to 30 September 2021

SEISS is not the only COVID-19 support scheme that should be declared on tax returns. If customers received other support payments during the 2021 to 2022 tax year, they may need to report this on their tax return if they are:

  • self-employed
  • in a partnership
  • a business

Customers can check which COVID-19 grants or payments they need to report to HMRC on GOV.UK. This applies to payments received during the 2021 to 2022 tax year.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We want to help customers get their tax returns right, first time. We have videos and guidance available online to support you with your Self Assessment. Search ‘help with Self Assessment’ on GOV.UK to find out more.”

Help and support is available on GOV.UK for those completing their Self Assessment tax returns. There is also a series of videos on YouTube.

The free and secure HMRC app can be used to make Self Assessment payments. Alternative payment options include:

·         paying through PAYE tax code (subject to eligibility) 

·         paying via online banking

Those who are unable to pay their tax bill in full can access the support and advice that’s available on GOV.UK. HMRC may be able to help by arranging an affordable payment plan, known as a Time to pay. Customers should try to do this online, go to GOV.UK for more information. Alternatively, they can contact the helpline.

All Self Assessment customers need to be alert to the risk of criminals emailing, calling or texting claiming to be from HMRC. Scams come in many forms – some threaten immediate arrest for tax evasion, others offer a tax rebate.

Contacts like these should set alarm bells ringing and HMRC advises customers to take their time and check scams advice by searching for ‘HMRC scams’ on GOV.UK. HMRC also urges customers never to share their HMRC login details. Someone using them could steal from the customer or make a fraudulent claim in their name.

Self Assessment: 100 days to go

Tick Tock! 100 days left on the Self Assessment clock!

With 100 days to go until the deadline for online returns, HM Revenue and Customs (HMRC) is reminding Self Assessment customers that the countdown to complete their tax return has begun.

Self Assessment customers have until 31 January 2023 to submit their online return for the 2021 to 2022 tax year.

More than 66,000 taxpayers beat the clock and filed their tax return on 6 April – the first day of the new tax year. HMRC is encouraging others to complete their return as soon as they can, so they know what they owe and can budget to make the payment by 31 January 2023. This also means that if a repayment is due, it can be claimed back sooner.

More information about Self Assessment can be found on GOV.UK.

Completing a tax return using HMRC’s online filing service is simple and convenient. Last year, more than 95% of customers filed online with many choosing to start it, save their progress and go back to it as many times as they need before it’s ready to submit. Those who submit their returns early still have until 31 January 2023 to pay.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “With 100 days to go until the online deadline, there’s still time to complete your tax return, to budget and look into the range of payment options if you need to.

“Help and support is available online to help customers with their tax returns. Just search ‘Self Assessment’ on GOV.UK to find out more and get started today.”

Filing early also means they will have plenty of time to access the number of payment options available including:

  • paying via the free and secure HMRC App
  • setting up an online monthly payment plan (self-serve Time to Pay)
  • paying through PAYE tax code (subject to eligibility) 
  • payment on account

Those who are unable to pay their tax bill in full can access the support and advice that’s available on GOV.UK. HMRC may be able to help by arranging an affordable payment plan.

HMRC has updated their Self Assessment guide to help customers complete their tax return. The guide contains helpful information including:

·         what help and support is available when completing their Self Assessment

·         what documents they need before they start

·         what earnings they need to declare including funds received through COVID support schemes

·         help with paying their tax bill and what to do if they have overpaid and are due a refund

All Self Assessment customers need to be aware of the risk of scams and HMRC is reminding them never to share their login details. Someone using them could steal from the customer or make a fraudulent claim in their name. Check HMRC’s advice about scams on GOV.UK. 

Anyone can check if they need to complete a tax return by using the free online tool on GOV.UK.

Those new to Self Assessment for the 2021 to 2022 tax year may include:

  • those who are newly self-employed and earned more than £1,000
  • a new partner in a business partnership
  • those who have received any untaxed income
  • those claiming Child Benefit but they or their partner have an income above £50,000

Self-employed workers must also register for Class 2 National Insurance contributions.

HMRC: Almost 66,500 file their Self Assessment on 6 April

Nearly 66,500 customers filed their 2021 to 2022 tax return on the first day of the new tax year – 6 April 2022 – HM Revenue and Customs (HMRC) has confirmed.

In recent years, there has been an increasing number of ‘early-bird’ customers filing their completed Self Assessment tax returns at the start of the new tax year – almost 30,000 more customers filed their returns on 6 April this year, compared to 2018 – and HMRC is encouraging others to change their filing habits and do it as soon as they can.

Customers have been able to file their 2021 to 2022 Self Assessment tax return since 6 April. And while many wait until nearer the annual filing deadline on 31 January, for some it is an opportunity to beat the last-minute rush and get it done as soon as they can, while they have the relevant information to hand.

Customers can file their tax return online. It is the quickest way to complete a Self Assessment return and it does not need to be finished in one go, as customers can access their return online anytime and save their progress until it is completed and ready to submit.

Customers who file their tax return early could benefit from:

·         receiving a tax refund on any overpaid tax from the 2021 to 2022 tax year sooner. Once a customer has filed their tax return, they can check if a repayment is due via their Personal Tax Account

·         managing their tax bill via direct debit. Customers can use the Budget Payment Plan service to set up weekly or monthly direct debit payments to spread the cost of any tax owed. The Self Assessment tax payment deadline for balancing payments remains unchanged – 31 January 2023

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “You don’t need to wait for the January rush to send us your tax return. More and more people are getting theirs out of the way early – search ‘Self Assessment’ on GOV.UK to get started.”

HMRC has updated the Self Assessment guide to help customers navigate through the tax return process. It includes helpful information on:

·         how to get help with your tax return

·         what to do when declaring furlough payments, Self-Employment Income Support Scheme grants or other COVID-19 support measures

·         what information you need before you can start completing your tax return

·         help with paying your Self Assessment tax bill

·         what to do if you have overpaid tax and are due a refund

Earnings and payments received during the pandemic will need to be reported on the tax return meaning customers must declare any grants or payments from the COVID-19 support schemes received between 6 April 2021 and  5 April 2022 as these are taxable, including: 

  • Self-Employment Income Support Scheme 
  • Coronavirus Job Retention Scheme 
  • other COVID-19 grants and support payments
  • any coronavirus payments incorrectly claimed

The Self Assessment deadline to file a return and pay any tax owed for the 2021 to 2022 tax year is 31 January 2023.

HMRC: One million people use extra time to file tax return

HM Revenue and Customs (HMRC) has revealed that more than one million customers filed their late tax returns in February – taking advantage of the extra time to complete their Self Assessment without facing a penalty.

About 12.2 million customers were expected to file a return for the 2020/21 tax year and more than 11.3 million customers submitted theirs by 28 February.

The deadline for submitting tax returns was 31 January but, this year, HMRC gave customers an extra month to complete it. If customers filed their returns in February, they would avoid a late filing penalty.

HMRC has given customers until 1 April to pay their outstanding tax bill or set up a Time to Pay arrangement to avoid receiving a late payment penalty. Interest has been applied to all outstanding balances since 1 February.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We understand some customers might be worrying about paying their Self Assessment bill this year, and we want to support them.

“To see if you’re eligible to set up a payment plan, go to GOV.UK and search ‘pay my Self Assessment’.”

Lucy Frazer, Financial Secretary to the Treasury, said: “Today’s stats show how vital the extra month was in supporting the cash flows of more than a million self-employed people and businesses across the UK, helping to ensure their survival as we recover from the pandemic.”

The existing Time to Pay service allows any individual or business who needs it the option to spread their tax payments over time. Self Assessment taxpayers with up to £30,000 of tax debt can do this online once they have filed their return.

If customers owe more than £30,000, or need longer to pay, they should call the Self Assessment Payment Helpline on 0300 200 3822.

Customers can now make Self Assessment payments quickly and securely through the HMRC app. Customers choosing to make secure Self Assessment payments through the HMRC app can either connect to their bank to make their payments or pay by Direct Debit, personal debit card or corporate/commercial credit/debit card.

A full list of the payment methods customers can use to pay their Self Assessment tax bill is available on GOV.UK.

HMRC urges everyone to be alert if they are contacted out of the blue by someone asking for money or personal information.

Customers should always type in the full online address www.gov.uk/hmrc to get the correct link for filing their Self Assessment return online securely and free of charge. HMRC sees high numbers of fraudsters emailing, calling or texting people claiming to be from the department. If you’re in doubt, do not reply directly to anything suspicious, but contact HMRC straight away and search GOV.UK for ‘HMRC scams’.

HMRC: More than 10.2 million filed their Self Assessment by 31 January

More than 10.2 million customers filed their 2020 to 2021 tax returns by the 31 January 2022 deadline, HM Revenue and Customs (HMRC) has revealed.

More than 630,000 customers filed on deadline day and the peak hour for filing was 16:00 to 16:59 when 52,475 completed their Self Assessment. There were 20,947 customers who completed their tax return between 23:00 and 23:59.

More than 12.2 million customers were expected to file a Self Assessment tax return this year. The remaining 2.3 million customers expected to file by 31 January now have until 28 February 2022 to submit their late 2020 to 2021 tax return and avoid a late filing penalty.

For any Self Assessment customer who is yet to pay their tax bill or set up a payment plan, interest will be applied to outstanding balances from 1 February. Customers have until 1 April to pay their tax in full, or set up a time to pay arrangement, to avoid a late payment penalty.

Those who are not yet able to file their tax return should pay an estimated amount as soon as possible, which will minimise any interest. Self-employed people can use the calculator on GOV.UK to help estimate their tax bill.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “I’d like to thank the millions of customers and agents who sent us their tax return and paid in time for this week’s deadline.

“We’re waiving penalties this year, to give those who missed the deadline an extra month. And customers can set up a monthly payment plan online if they’re worried about paying their tax bill. Search ‘Self Assessment’ on GOV.UK to find out more.”

The existing Time to Pay service allows customers, who are unable to pay their bill in full, to spread their tax payments into manageable monthly instalments. Self Assessment customers with up to £30,000 of tax debt can do this online once they have filed their return.    

If customers owe more than £30,000, or need longer to pay, they should call the Self Assessment Payment Helpline on 0300 200 3822.

A full list of the payment methods customers can use to pay their Self Assessment tax bill is available on GOV.UK.

The 2020 to 2021 tax return covers earnings and payments during the pandemic. Taxpayers will need to declare if they received any grants or payments from the COVID-19 support schemes up to 5 April 2021 on their Self Assessment, as these are taxable, including:

  • Self-Employment Income Support Scheme
  • Coronavirus Job Retention Scheme
  • other COVID-19 grants and support payments such as self-isolation payments, local authority grants and those for the Eat Out to Help Out scheme

The £500 one-off payment for working households receiving tax credits should not be reported in Self Assessment.

It is important that customers check and make any changes to their tax return to make sure any SEISS or other COVID-19 support payments have been reported correctly in their Self Assessment.

HMRC urges everyone to be alert if they are contacted out of the blue by someone asking for money or personal information. Taxpayers should always type in the full online address www.gov.uk/hmrc to get the correct link for filing their Self Assessment return online securely and free of charge. 

HMRC sees high numbers of fraudsters emailing, calling or texting people claiming to be from the department.

If in doubt, HMRC advises not to reply directly to anything suspicious, but to contact them straight away and to search GOV.UK for ‘HMRC scams’.

HMRC: Self Assessment customers use monthly payment plans to pay £46 million in tax

More than 20,000 Self Assessment customers have used HM Revenue and Customs (HMRC) online monthly payment plan service since April to spread the cost of their tax bill, totalling £46 million so far, it has been revealed.

Where customers are struggling to pay their bill in full, the self-serve Time to Pay service allows Self Assessment customers to manage how they pay their tax liabilities. Customers can use the online service for tax bills worth up to £30,000 without the need to talk to HMRC. The service will create a bespoke monthly payment plan for the customer based on how much tax is owed and the length of time needed to pay.

Last year, 123,000 customers used self-serve Time to Pay to spread the cost of their 2019/20 tax bill, worth £460 million.

Customers have until 31 January 2022 to complete their 2020/21 tax return and pay their bill.

If they can’t pay in full, customers can set up their own Time to Pay arrangement online if they:

  • have filed their 2020/21 tax return
  • owe less than £30,000
  • are within 60 days of the payment deadline
  • plan to pay their debt off within the next 12 months or less

If customers owe more than £30,000, or need longer to pay, they should call the Self Assessment Payment Helpline on 0300 200 3822.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We understand some customers might be worrying about paying their Self Assessment bill this year, and we want to support them.

“To see if you’re eligible to set up a payment plan, go to GOV.UK and search ‘pay my Self Assessment’.”

Self-serve Time to Pay is just one way customers can pay their Self Assessment tax bill, a full list of alternative payment methods is available on GOV.UK.

HMRC urges everyone to be alert if they are contacted out of the blue by someone asking for money or personal information.

Customers should always type in the full online address www.gov.uk/hmrc to get the correct link for filing their Self Assessment return online securely and free of charge.

HMRC sees high numbers of fraudsters emailing, calling or texting people claiming to be from the department. If in doubt, HMRC advises not to reply directly to anything suspicious, but to contact them straight away and to search GOV.UK for ‘HMRC scams’.

HMRC warns customers about Self Assessment tricksters

As HM Revenue and Customs (HMRC) prepares to issue emails and SMS to Self Assessment customers, the department is reminding them to be on their guard after nearly 800,000 tax-related scams were reported in the last year.

Fraudsters use Self Assessment to try and steal money or personal information from unsuspecting individuals. In the last year alone, HMRC has received nearly 360,000 bogus tax rebate referrals.

The Self Assessment deadline is 31 January 2022 and customers may expect to hear from HMRC at this time of year. More than 4 million emails and SMS will be issued this week to Self Assessment customers pointing them to guidance and support, prompting them to think about how they intend to pay their tax bill, and to seek support if they are unable to pay in full by 31 January.

However, the department is also warning customers to not be taken in by malicious emails, phone calls or texts, thinking that these are genuine HMRC communications referring to their Self Assessment tax return.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Never let yourself be rushed. If someone contacts you saying they’re from HMRC, wanting you to urgently transfer money or give personal information, be on your guard.

“HMRC will also never ring up threatening arrest. Only criminals do that.

“Scams come in many forms. Some threaten immediate arrest for tax evasion, others offer a tax rebate. Contacts like these should set alarm bells ringing, so if you are in any doubt whether the email, phone call or text is genuine, you can check the ‘HMRC scams’ advice on GOV.UK and find out how to report them to us.”

Criminals use emails, phone calls and text messages to try and dupe individuals, and often mimic government messages to make them appear authentic. They want to trick their victims into handing over money or personal or financial information.

Customers can report suspicious phone calls using a form on GOV.UK; customers can also forward suspicious emails claiming to be from HMRC to phishing@hmrc.gov.uk and texts to 60599.

HMRC has a dedicated team working on cyber and phone crimes. They use innovative technologies to prevent misleading and malicious communications from ever reaching the customer.

Since 2017 these technical controls have prevented 500 million emails from reaching HMRC’s customers. More recently, new controls have prevented 90% of the most convincing SMS messages from reaching the public and controls have been applied to prevent spoofing of most HMRC helpline numbers.  

HMRC is also reminding Self Assessment customers to double check websites and online forms before using them to complete their 2020/21 tax return.

People can be taken in by misleading websites designed to make them pay for help in submitting tax returns or charging to connect them to HMRC phone lines.

Customers who are in any doubt about whether a website is genuine should visit GOV.UK for more information about Self Assessment and use the free signposted tax return forms.

HMRC: Self-Assessment tax return

More than 10.7 million customers completed their 2019/20 tax return by 31 January 2021 and 795,300 were from Scotland, HM Revenue and Customs (HMRC) has revealed.

The deadline to complete the 2020/21 Self Assessment tax return is 31 January 2022. Customers can complete it at any time up to the deadline but HMRC is encouraging them to complete it early to allow for more time to pay their tax bill or set up a payment plan.

Customers must complete a Self Assessment return if they:

  • earned more than £2,500 from renting out property
  • received, or their partner has received, Child Benefit and either of them had an annual income of more than £50,000
  • received more than £2,500 in other untaxed income, for example from tips or commission
  • are a self-employed sole trader whose annual turnover is more than £1,000
  • are an employee claiming expenses in excess of £2,500
  • have an annual income of more than £100,000
  • have earned income from abroad that they need to pay tax on

The 2020/21 tax return covers earnings and payments during the pandemic. Customers will need to declare if they received any grants or payments from the COVID-19 support schemes up to 5 April 2021 on their Self Assessment, as these are taxable, including:

  • Self-Employment Income Support Scheme
  • Coronavirus Job Retention Scheme
  • other COVID-19 grants and support payments such as self-isolation payments, local authority grants and those for the Eat Out to Help Out scheme

The £500 one-off payment for working households receiving tax credits should not be reported in Self Assessment.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Customers can beat the rush and send us their tax returns now. They have until the 31 January deadline to pay, which means they have longer to set up a monthly payment plan if they need one.

“Visit GOV.UK and search ‘self assessment’ to find out more.”

Even if customers submit their completed tax return now, they do not have to pay any tax owed until 31 January 2022.

HMRC recognises that some customers may be worrying about paying their tax bill. Customers can access support to help pay any tax owed on GOV.UK.

Various payment options include:

  • paying through a customers’ tax code (PAYE customers only)
  • Payment on Account
  • setting up an online monthly payment plan (self-serve Time to Pay)
  • pay by debit or corporate credit card
  • pay at a bank or building society

Visit GOV.UK for a full list of payment options and the eligibility criteria. Customers should contact HMRC if they have concerns about paying their tax bill.

HMRC urges everyone to be alert if they are contacted out of the blue by someone asking for money or personal information.

Customers should always type in the full online address www.gov.uk/hmrc to get the correct link for filing their Self Assessment return online securely and free of charge.

HMRC sees high numbers of fraudsters emailing, calling or texting people claiming to be from the department.

If in doubt, HMRC advises not to reply directly to anything suspicious, but to contact them straight away and to search GOV.UK for ‘HMRC scams’.

Below is a breakdown of the estimated number of Self Assessment returns received from customers for 2019/20 filers in Scotland’s local authority areas:

Aberdeen City                       34,300
Aberdeenshire                       54,800
Angus                       18,000
Argyll and Bute                       17,400
Scottish Borders                       23,300
Clackmannanshire                         5,800
West Dunbartonshire                         7,600
Dumfries and Galloway                       26,000
Dundee City                       15,100
East Ayrshire                       14,300
East Dunbartonshire                       18,900
East Lothian                       18,500
East Renfrewshire                       17,500
City of Edinburgh                       97,600
Falkirk                       18,300
Fife                       47,900
Glasgow City                       68,000
Highland                       45,900
Inverclyde                         7,900
Midlothian                       12,700
Moray                       15,200
North Ayrshire                       15,200
North Lanarkshire                       34,300
Orkney Islands                         5,600
Perth and Kinross                       29,800
Renfrewshire                       19,500
Shetland Islands                         4,400
South Ayrshire                       16,500
South Lanarkshire                       42,000
Stirling                       17,200
West Lothian                       21,300
Na h-Eileanan Siar                         4,500
TOTAL                             795,300