Important tax deadline approaching fast
With all the focus on the forthcoming Budget this month, it is easy to forget that 31 October is a key tax deadline in the annual calendar. What is it, and what are the consequences of missing it?
The deadline for filing the annual tax return is 31 January. Everyone knows that - after all, that's the month all the reminder adverts start appearing in the media. However, the 31 January deadline only applies to returns that are submitted electronically. Unlike companies, individuals can still fill in a paper return and submit it to HMRC. The only problem is that the corresponding deadline is three months earlier, i.e. 31 October. If this is missed, a £100 penalty will be applied. Of course, this can be avoided by submitting an electronic return before 31 January, but for some people this isn't practical. For example, they may not have access to a computer.
In some circumstances, a return is incapable of being accepted electronically due to HMRC's system. In these instances a paper return is the only option, and an extended deadline of 31 January applies. A late filing penalty would initially be charged, but known issues will be accepted as a reasonable excuse upon appeal. A list of current issues is availaible for 2020/21.
Related Topics
-
Timetable for agent multi-factor authentication rollout published
HMRC has published further details of its plans to introduce multi-factor authentication (MFA) for tax agents. The rollout is intended to strengthen security across HMRC's online services and will be introduced in stages over the coming months. What do you need to know?
-
Using the EIS to unwind capital gains tax
You inherited shares from your father last year and sold them several months later making a tidy capital gain. You’ve read that the enterprise investment scheme (EIS) can defer the resulting tax bill, but how might it reduce it?
-
Electronic VAT return and payment due