HMRC Extends Tax Self-Assessment Deadline

By Ann Coleman

Trust and Estate Tax Accountant

If you are struggling to find both the time and information to submit your self-assessment tax return to HMRC before 31 January 2021, you will be pleased to know that HMRC has extended the submission deadline.

The new submission deadline is 28 February 2021, meaning that if you file (submit) the return during February 2021, you will not be fined the usual £100 for late submission.

The fine for this year will only be levied from 1 March 2021 onwards.

The Revenue is still expecting some kind of payment by 31 January 2021 and interest will most probably be charged if the payments are not made.

If you are not sure how much to pay, you can make a payment on account (perhaps the same amount that you paid this time last year) before 31 January. You must then file your tax return asap in February 2021.

Or, if you do not have the money to pay immediately, you can contact HMRC and enter into some kind of payment plan arrangement – usually over 12 months.

As of April 2020, the rules regarding the reporting of capital gains on properties changed. If you sell a residential property other than your principal private residence, and achieve a gain, this is no longer reported through your self-assessment tax return.

Instead, you must report the gain and pay any capital gains tax due within 30 days of completion of the sale.

This is a significant change and non-compliance will lead to the issue of penalties and accrual of interest for late payment of the tax. Please note that a report must be made for each owner of the property, not simply once per property, as each owner reports their own share of the gain.

In addition to preparing annual Self-Assessment Tax Returns, we do assist with the completion of Capital Gains Tax reporting.

For more information on preparing tax returns, or to find out how we can help you, please contact us on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.