Self employed reminded of tax return deadline

HM Revenue and Customs (HMRC) have issued a reminder that there is less than one month to go for the self-employed to complete their Self Assessment tax return.

After the 1st January deadline for filing paper returns, self employed people have until 31st January to file their Self Assessment return online. 

HMRC's Interim Director General for Customer Services, Karl Khan, explains: 

“In what was a very difficult year for many, we are grateful to the 55% of our customers who have already submitted their returns. 

“HMRC is ready to offer support to those who are yet to file their returns or are worried about paying their tax bill, but they must act now so we can help before the deadline.” 

Once a Self Assessment tax return has been submitted and tax due calculated, you can either pay your tax liabilities in full or spread the cost with a monthly payment plan, up to the value of £30,000, using the self-serve Time to Pay facility. It should be noted that interest will be applied to any outstanding balance from 1st February 2021.

If you have taken on casual work or a ‘side hustle' to add to your income whilst being unable to work due to COVID-19 restrictions, you should also check online whether you need to declare this non-PAYE income on your Self Assessment tax return. 

If you need to submit a Self Assessment tax return and you do not do so by 31st January, you will be liable for fines; there's a penalty of £100 if your tax return is up to three months late, or more if it's delayed further.

If you deferred payment of any Self Assessment tax liabilities which were due in July 2020 because you were unable to pay due to COVID-19, these may either be paid in full by 31st January 2021, or alternatively you may spread the payments in monthly instalments up to 12 months.