Self-assessment tax deadline warning: Assessments need to be completed by tomorrow
Coronavirus has had a severe impact on the country’s finances which have forced the government to step in and offer support. Thus far, the state has offered support packages for employers, homeowners and renters, benefit claimants and, most recently, the self-employed.
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The self-employment income support scheme will allow eligible claimants to receive a taxable grant worth 80 percent of their trading profits.
This has a limit of £2,500 a month for up to three months.
While the scheme has been welcomed by many, it has also been criticised for both its delay in delivery and availability.
As it stands, self-employed people cannot put a claim through until mid-May with the first payments not expected until June.
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There are certain eligibility rules that determine who can apply for the scheme.
The government detail that a person can claim if they’re a self-employed individual or a member of a partnership and they:
- have submitted their self-assessment tax return for the tax year 2018 to 2019
- traded in the tax year 2019 to 2020
- are trading when they apply, or would be except for coronavirus
- intend to continue trading in the coming tax year
- have lost trading profits due to coronavirus
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The need for self-assessment tax returns is particularly important.
These need to be submitted by tomorrow. If they aren’t, the person involved will not be able to claim the scheme.
This could be a worrying reality for some late completers as self-assessments can be complex and long winded.
Thankfully, there is support available from both public bodies and private experts.
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Dan Stopp, an accounting manager for Bokio, commented on this tight deadline: “For any late filers looking to claim a grant through the new Self Employed Income Support Scheme, tomorrow is the last day to settle your 18/19 accounts before the April 23rd cut-off.
“Only one full day remains until the cut-off, so for those still to file, time is of the essence.
“Here are a few things worth knowing in order to help speed up the process of filing your self-assessment tax return and qualify for a self-employment grant, before it’s too late!”
There are a lot of elements to a tax return but Dan provided some tips and warnings on what to look out for:
You must have a UTR number to file
“If you have registered online, HMRC will have sent you a unique taxpayer reference (UTR) number and activation code in the post.
“You will need this in order to file your self-assessment, and if you haven’t registered, sadly it is too late as HMRC warn that it takes up to 10 days to receive your UTR number and code through the post.”
Yes, your £100 late fine still needs to be paid
“If you are filing now, then it is likely that you will have already received a late filing fine from HMRC to the value of £100.
“Despite many changes, this original late fine will still have to be paid in full, and if it remains unpaid after April 31st (3 months since deadline), you will be charged more.”
Do NOT miss the cut-off
“This is especially important given the potential impact this could have on your eligibility to government support.”
Don’t forget about saving by claiming for expenses
“Now more than ever, making sure you’re saving money by being as tax efficient as possible is vital. “Often in the rush, it can be easy to forget or simply be unaware of the expenses you can claim for. “For example, whilst it’s well known that travel and stationary count as expenses, few people may be aware that staff uniform and clothing can also be claimed.
“To see a full list of expendable items make sure to check the official HMRC website.”
Use a digital solution to speed things up
“Utilising reliable and free-to-use accounting software is a great way to cut down the hours spent doing your tax return.
“Simple tools like Bokio offer integrated features that allow income, receipts and expenses to be easily uploaded, organised and broken down, meanwhile bank feeds allow transactions from last year to be imported quickly, saving time.”
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