Rishi Sunak has been urged to extend the self assessment tax return deadline as millions of self-employed workers struggle with coronavirus and complicated SEISS interferences. As it stands, self assessment tax returns for the current year must be filed and paid by January 31.
Generally, every year a large amount of people miss the deadline but Kevin Sefton, the CEO of untied, the personal tax app, warned the numbers could jump this year: “A million people miss the January 31 tax deadline most years.
“But it looks like there’s going to be an even higher number this year because of COVID-19 and related knock-on effects.
“Whilst a delay isn’t the sort of thing that HMRC will agree to readily, we are calling for an extension to the filing deadline AND the payment deadline this year as a one off.”
Kevin went on to explain how recent rule changes concerning the latest lockdown could make the situation even more difficult.
The Government warns if HMRC are not paid by the deadline, affected individuals will be charged interest and may have to pay an additional penalty.
It should be noted that while there are many methods for covering the payment, the timings for processing them could vary.
These timings will need to be factored in by those who have left it to the last minute.
This is especially importnant to note as HMRC are likely to be slow this year given the impact of the lockdown.
If a person cannot afford to pay their latest bill in full, they can set up a payment plan to cover the cost across the year so long as they owe £30,000 or less and do not have any other payment plans or debts with HMRC.
Should this option be taken, people will be able to choose how much they want to pay straight away and how much they’ll cover on a monthly basis going forward.
It should be noted if this option is taken interest will be added to the bill and HMRC can demand full payment if repayments are missed.
Self-employed individuals who have also received a grant from SEISS will need to report the funds on their tax returns, even though the grants themselves will not need to be repaid.