Self Assessment tax returns
HM Revenue and Customs (HMRC) is reminding Self Assessment customers that there are just 65 days left to complete their tax return ahead of the deadline on 31 January 2021.
Each year, around 11 million customers complete a Self Assessment tax return. Customers can complete their 2019 to 2020 tax return at any time up to the deadline but HMRC recommends completing it early to allow customers time to pay their tax bill or set up a payment plan.
The majority of Self Assessment customers choose to complete their tax return online, which provides an immediate calculation of any tax owed.
Customers must complete a Self Assessment return if they:
- have earned more than ยฃ2,500 from renting out property
- have received, or their partner has received, Child Benefit and either of them had an annual income of more than ยฃ50,000
- have received more than ยฃ2,500 in other untaxed income, for example from tips or commission
- are a self-employed sole trader whose annual turnover is over ยฃ1,000
- are an employee claiming expenses in excess of ยฃ2,500
- have an annual income of over ยฃ100,000
- have earned income from abroad that they need to pay tax on
Once Self Assessment customers have completed their 2019 to 2020 tax return, and know how much tax is owed, they can set up their own payment plan to help spread the cost of their tax liabilities, up to the value of ยฃ30,000.
They can use the self-serve Time to Pay facility to set up monthly direct debits and this can all be done online so there is no need to phone HMRC.
Customers can visit GOV.UK toย find out more about the service and if they are eligible.
Be aware of copycat HMRC websites and phishing scams. Always type in the full online address www.gov.uk/hmrc to get the correct link for filing your Self Assessment return online securely and free of charge.
And be alert if someone calls, emails or texts claiming to be from HMRC, saying that you can claim financial help, are due a tax refund or owe tax. It might be a scam. Check GOV.UK forย how to a recognise genuine HMRC contact.
