Time for Taxes

You might remember the HMRC ad that claimed “tax doesn’t need to be taxing” and it’s true that tackling your taxes now rather than waiting until the last possible minute will make the whole experience easier and help you avoid punitive late fees.

Start by confirming if you need to submit a self-assessment tax return. If you’re a partner in a business or self-employed and earning more than £1,000, you need to submit a return. You might also need to submit a return if you earn money from renting out a property, tips, interest on savings, investment returns, dividends or income earned overseas, even if you normally pay PAYE tax on wages or a pension.

If this will be your first time submitting a tax return, act now as you’ll need to register first and allow time to receive your log in information. Check their specific advice on registering for self-assessment as someone who works in a business partnership, someone who is self-employed or a sole trader, or someone who isn’t self-employed.

Remember to check any entitlements you have this year under the various covid-19 support measures as these might affect the information you submit in your return.

The deadline to submit your online tax return, and to pay the tax you owe, is 31 January 2021.