Tax return Articles

Do you need to complete a Self Assessment Tax Return for the 2020/2021 tax year?

How do you know if you need to complete a tax return?

The tax year is from 6 April to 5 April the following year. You’ll need to send a tax return if in the last tax year:

Early Bird Self Assessment Discount Umbrella Accountants

Early bird offer - Discounted price of £150 + VAT – Ends 31st August

Tired of finishing that self-assessment with just a few late January days to spare? This could be the year when you finally make a change.

It’s a feeling that many contractors will be all too familiar with. One minute you’re toasting the end of another successful year, the next you’re staring down at a mountain of work you didn’t get done before the Christmas break and, all the while, precious seconds are ticking down on the self-assessment deadline.

Sure, you don’t really want to think about it while the World Cup is on and the sun is out, but completing your tax return paperwork early does have a lot of benefits.

Here are four that we think are most important.

Do I have to submit a tax return?

With little more than a week to go before the self-assessment tax deadline hits, it is worth double-checking whether or not you have to submit a tax return.

If you have to send a tax return and you miss the 31st January deadline then you will be penalised. If your tax return is less than three months late then you’ll have to pay a fine of £100, but this figure can rise quickly if you submit a return after three months or you pay your tax late.

For certain groups like company directors, it is pretty obvious that you will have to pay. But there are some complicated rules that you might not have taken into account.

If you are an umbrella contractor with, then as a rule of thumb you won’t have to submit a tax return, but there are some circumstances that may contradict that. 

marketing | 20 January 2016
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A controversial proposal that could see small business owners forced to update their tax bill four times a year will be debated in parliament next week, after an online petition was signed by more than 100,000 people.

The parliamentary petitions committee, which handles online petitions, has scheduled a debate on ‘quarterly tax returns’ for the afternoon of the 25th of January.

Small business owners reacted angrily when the proposal was first announced by Chancellor George Osborne at his Autumn Statement. To vent frustration, business owner Paul Johnson started an online petition that has since been signed by over 107,000 people. 

New research from the Citizens Advice Bureau (CAB) has found that less than half of people who say they’d like to be self-employed are actually working for themselves.

A lack of support and guidance for tasks like budgeting and filing tax returns was highlighted as one of the major barriers stopping would-be self-employed workers.

The national charity also found that the gap between self-employment aspiration and achievement grows larger for adults under the age of 35.

Almost half (48%) of people aged 18-34 said that they would like to be self-employed but only 7% of people in this age bracket work for themselves. 

Not everyone is a self-assessment early bird! But don’t stick your head in the sand, it’s not too late to get help with your self-assessment

The deadline for submitting your online self-assessment tax return and paying any tax due is 31st January 2019.  This is only just over three weeks away….but don’t panic!! 

Accountants are being booked up quickly as time runs out but at Umbrella Accountants, we always plan for the last-minute rush!  We have capacity to help you with your self-assessment – provided you don’t leave it until the very last minute!! Plus, if you quote ‘2019SA’ we will give you a 25% discount off the current fee!

If you miss the deadline by up to three months, then you will get an automatic penalty of £100. You could have to pay more if it is later than three months or if you pay the tax bill late.

So, what do you need to do to avoid the last-minute stress and heartache?  Here are our top tips.

HMRC fudging call centre waiting time figures

The taxman has come under pressure from MPs and contracting organisations after it was revealed that HMRC doesn’t include time spent listening to automated messages in their official ‘waiting time’ figures.

January is a busy month for contractors. Many have a back-log of Christmas work and now have less than 2 weeks left to file any outstanding self-assessment tax returns.

Did you, like many others, have to run the mad dash to get your tax return finished over the weekend?

HMRC estimates that around six per cent of tax returns are filed on the 31 January deadline day each year. For those leaving it to the last minute, HMRC’s online filing system can be slower than normal and the automatic £100 penalty for late filing is a constant threat. 

How can you avoid this deadline day rush in years to come? Here are our top five tips for a stress-free 2016-17 tax year. 

Self-employed workers, landlords and small business owners are all faced with the prospect of having to fill out four tax returns every year.

Filing accounts quarterly will bring small operations, who currently only have to send their accounts to HMRC once a year, into line with large corporations. Some believe that the extra administrative burden could be harmful to taxpayers but we believe that accountancy customers will fare better than most.

The plans, which were only recently discovered having been slipped into the small print of George Osborne’s Autumn Statement, will affect around four million Britons. 

The self assessment tax return submission deadline for completion and filing of your online tax return is midnight 31st January 2015 as is your tax payable.