January is the month in the year when we resolve to make new resolutions such as eating less, exercising more, and submitting our tax returns if we are required to do so!
The taxpayers that need to submit their 2020-21 tax returns will be relieved to know that HMRC have decided to extend the normal submission deadline of 31 January 2022 to effectively 28 February 2022.
As of the first week of January just over 6.5 million out of the 12.2 million taxpayers that are required to submit tax returns have done so and, therefore, it is becoming obvious that taxpayers need more time to submit their tax returns.
With respect to the payments due, also by the end of the month (which cannot usually be ascertained if a tax return has not been submitted), the taxpayers will not receive a late filing penalty as long as they pay what they owe in full or set up a payment plan with HMRC by 1 April 2022 although they will be charged interest.
These changes are intended to ease the burden whilst we all navigate the next few months with the ongoing pandemic.
Our recommendation here at Nockolds would be that if you are finding it difficult to either collate the information needed to complete your tax return or pay the tax you owe, you try to do as much as possible before 31 January 2022 as it may give you a handle on how much you owe or whether you are entitled to an income tax refund.
Nockolds are available to help if you require your tax return to be completed and we would endeavour to do this before 31 January 2022 if possible and at the same time we can always talk to you about tax planning before the current financial year closes to 5 April 2022.
For more information and to find out how we can help you, please contact us on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.