29th November 2021How to avoid late penalties when filing your tax returns
The online self-assessment deadline, is the 31st January 2022. However, HMRC has announced that they are waiving late penalties until the 28th February. But, this is not an extension, late payment interest at 2.75% will still accrue from 1 February 2022. HW Fisher share their advice to make sure you file on time and correctly.
Trusha Shah, Tax Manager at HW Fisher explains:
“There is still sufficient time, but we would urge anyone who is yet to file their tax return to make sure they are prepared ahead of the 31st January deadline. Organisation is key. All too often clients leave it too late and make simple mistakes in the rush to complete on time.”
Avoid these common mistakes
Make sure that you have all the required information in advance! Clients often leave it too late to gather everything that is needed. For example, make sure you have the relevant information from banks and agents such as interest certificates, annual rental/investment statements as requesting these at the last minute often delays the preparation and submission of tax returns.
- If you’re moving back to the UK, or if you are going to spend time abroad, remember to inform in any change of permanent or residential address and/or residency status.
- Remember to report a sale/disposal of an asset which has tax implications – this is often forgotten!
New changes to be aware of:
- Capital Gains Tax reporting
- Although HMRC have now extended the ‘report and pay’ deadline to 60 days for property disposals made on or after 27 October 2021, there is often the misconception among non-resident landlords that if a loss has been made on a disposal of a UK Property, it does not need to be reported. For non-resident individuals, regardless of whether there is a Capital Gain or Loss, a Capital Gains Tax (CGT) return is required to be submitted. It has to be reported and paid within 30 days from date of completion of sale for disposals made between 6/4/2020 and 26/10/2021, and 60 days for completions on or after 27/10/2021. Disposals should also be included in your self-assessment return, with final figures if they weren’t available for the in-year return.
- Covid support measures
- Self-employed businesses have received financial support such as Covid grants which would impact this tax year. This needs to be reported on your tax return. Should this be included within the business profits or rental income, make sure your accountant is aware, so the correct disclosure is made
Trusha adds: “Every UK resident with untaxed income over £1,000 from self-employed earnings or rental income etc has an obligation to file a self-assessment tax return.”
For more information or to discuss your personal circumstances, please get in touch.