The deadline date is approaching fast to file your tax returns online. You then need to pay HMRC by 31st January 2020 your first Payment on account for 2019/2020 (and any further liabilities for 2018/2019). If you submit the the form after 31st January there will be a penalty even if you have no tax to pay.
What is a Tax Return
The information you submit to HMRC so they can bill you for your income tax. You will need to inform them of income, expenses and other tax information. Tax returns allow taxpayers to calculate their tax liability, schedule tax payments, or request refunds for the overpayment of taxes.
How do I know if I need to submit a tax return
If you run your own businesss,
• You’re self-employed and your income was more than £1,000.
• You or your partner’s income was more than £50,000, and one of you claimed child benefit.
• You earned more than £2,500 from renting out property, or from other untaxed income such as tips or commission.
• You earned more than £100,000 in taxable income.
• You earned £10,000 or more before tax from savings, investments, shares or dividends.
• You need to pay Capital Gains Tax.
• You’re the beneficiary of a trust receiving regular income.
• Your state pension was more than your personal allowance and was your only source of income.
• HMRC has told you that you didn’t pay enough tax last year (and you haven’t already paid up through your tax code or voluntary payments).
Important Dates during the year for your Tax Return
The other important dates during the year for your self-assessment are
31 July 2020 is the deadline for making your second ‘payment on account’ instalment to HMRC.
5 October 2020 is the deadline for telling HMRC that you’re self-employed so that they’re aware you need to complete a tax return next year.
30 December 2020 is the deadline for filing your online tax return if you want the tax owed to be collected through PAYE via your tax code. This is only an option if you have some income that’s already taxed through PAYE (i.e. you’re employed as well as self-employed), and if your Self Assessment tax bill for 2018-19 is below £3,000.
How we can help
Tax returns can be very mundane, time consuming and stressful. We aim to help you through the process of managing your tax affairs in the most timely and cost-effective way. Please contact us on 020 8532 9843 or email: email@example.com to make your first free consultation.