Self Assessment – Page 2 – The NEN

One week left to file for fewer than 3.4 million Self Assessment customers

Millions of customers still to file their Self Assessment tax return with one week left until the deadline

With one week to go until the deadline, HM Revenue and Customs (HMRC) is urging fewer than 3.4 million customers to get their Self Assessment tax return done.

More than 12 million customers are expected to file a tax return for the 2021 to 2022 tax year and pay any tax owed by 31 January deadline. To date, almost 8.7 million customers have already filed their tax return.

Last year, more than 10.2 million customers filed their tax returns for the 2020 to 2021 tax year by the deadline on 31 January 2022.

Anyone who is yet to start their Self Assessment, or needs help completing it, can visit GOV.UK to access a wide range of resources including guidance, webinars and YouTube videos. Customers are encouraged to check online for help before calling HMRC during what is the busiest time of the year.

Myrtle Lloyd, Director General for Customer Services, said: “Time is running out for millions of people who still need to file their Self Assessment and pay any tax owed.

“There’s no need for customers to call us, they can save time and search ‘Self Assessment’ on GOV.UK for a wealth of information and resources to help them complete their tax return.”

Customers can pay their tax bill in around 60 seconds via the free and secure HMRC app. The app can also provide useful information for those yet to complete their tax return including their National Insurance number, Unique Taxpayer Reference and any PAYE information.

Customers who are unable to pay what they owe in full, may be able to set up a payment plan, allowing them to spread the cost into manageable monthly instalments. Self Assessment customers can use self-serve Time to Pay 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

For customers who pay their current estimated tax bill via Payment on Account, the first instalment for the 2022 to 2023 tax year is due on 31 January.

A full range of payment options is listed on GOV.UK.

Anyone who files their tax return or pays any tax owed after 31 January may face a penalty.

HMRC will treat those with genuine excuses leniently, as it focuses on those who persistently fail to complete their tax returns and deliberate tax evaders. The penalties for late tax returns are:

an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
after 12 months, another 5% or £300 charge, whichever is greater

There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months.

Customers need to be aware of the risk of falling victim to scams. Check HMRC scams advice on GOV.UK.

Find out more about Self Assessment.

From pensioners to teenagers, HMRC reveals who files a tax return

HMRC has revealed that more pensioners filed a tax return for the 2020 to 2021 tax year compared to young people.

Overall, those aged 65 and over accounted for 16% of individuals who submitted a tax return, whereas 16 to 24 year olds made up 2.7% of total filers.

The new data is part of analysis by HMRC into the demographic data of the Self Assessment population.

The findings also show:

people aged 45 to 54 were the largest group of filers, accounting for 24% of all tax returns submitted
more than 294,000 16 to 24 year olds filed a return, making up 2.7% of total filers
62% of those who submitted a return last year were men, compared to 38% who were women

The data also showed that almost 146,000 people submitted their tax return at the earliest opportunity between 6 and 11 April 2021.

More than 12 million people are expected to file a Self Assessment tax return for the 2021 to 2022 tax year. Anyone yet to submit theirs has until 31 January to complete it, pay any tax owed or set up a payment plan, or risk having to pay a penalty.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Time is running out for anyone who has yet to start their tax return – there is a wide range of guidance and webinars available online for those who need a helping hand. Just search ‘Self Assessment’ on GOV.UK to make a start.“

Payments are also due on 31 January and customers still have time to decide which payment option is best for them. For customers who are due a refund, they should include their bank account details in their tax return so that if HMRC needs to repay them, it can be done quickly and securely.

Customers can now use the free and secure HMRC app to make Self Assessment payments, as well as accessing information which they need to complete their tax return, including their Unique Taxpayer Reference (UTR), National Insurance number and employment history.

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

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 should check HMRC’s scams advice on GOV.UK.

Government announces phased mandation of Making Tax Digital for Income Tax

Self-employed individuals and landlords will have more time to prepare for Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA), following announcement by the UK Government yesterday.

Understanding that self-employed individuals and landlords are currently facing a challenging economic environment, and the transition to MTD for ITSA represents a significant change to taxpayers and HMRC for how self-employment and property income is reported, the government is giving a longer period to prepare for MTD. The mandatory use of software is therefore being phased in from April 2026, rather than April 2024.

From April 2026, self-employed individuals and landlords with an income of more than £50,000 will be required to keep digital records and provide quarterly updates on their income and expenditure to HMRC through MTD-compatible software. Those with an income of between £30,000 and £50,000 will need to do this from April 2027. Most customers will be able to join voluntarily beforehand meaning they can eliminate common errors and save time managing their tax affairs.

The government has also announced a review into the needs of smaller businesses, and particularly those under the £30,000 income threshold. The review will consider how MTD for ITSA can be shaped to meet the needs of these smaller businesses and the best way for them to fulfil their Income Tax obligations. It will also inform the approach for any further roll out of MTD for ITSA after April 2027.

Mandation of MTD for ITSA will not be extended to general partnerships in 2025 as previously announced. The government remains committed to introducing MTD for ITSA to partnerships in line with its vision set out in the Tax Administration Strategy.

Victoria Atkins, Financial Secretary to the Treasury, said: “It is right to take the time to work together to maximise the benefits of Making Tax Digital for small businesses by implementing the change gradually.

“It is important to ensure this works for everyone: taxpayers, tax agents, software developers, as well as HMRC.

“Smaller businesses in particular should be able to experience the benefits of increased digitalisation of Income Tax in a way which meets their needs. That is why we are also today announcing a review to establish the best way to achieve this.”

Jim Harra, Chief Executive and First Permanent Secretary, HM Revenue and Customs, said: “HMRC remains committed to the delivery of Making Tax Digital as a critical part of our strategy for digitalising and modernising the tax system, but we want to make sure we get this right and deliver it effectively.

“A phased approach to mandating MTD for Income Tax will allow us to work together with our partners to make sure that our self-employed and landlord customers can make the most of the opportunities this will bring.”

The announcement relates to MTD for ITSA only. Making Tax Digital for VAT has already been implemented and is demonstrating the benefits to businesses and the tax system of digital ways of working.

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.

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’.