January tax deadlines approach

January tax deadlines approach

A big tax deadline is looming that you should be aware of. At the end of this month (January 31) all taxpayers who are subject to self-assessment will have to pay unpaid tax and NIC for 2020 – 2021, as well as make their first payment on accounts for 2021 – 2022.

If you are such a taxpayer, here are the steps you should take:

First, make sure that you know the amount you need to pay, and have the reference number handy that you will need to quote. If you do not have access to this information, contact us immediately on the phone number listed at the end of this post and we will tell you everything you need to know.

Second, ensure that you can make the payment in full on the due date. If you know that this will be a problem, now is the time to contact HMRC and request more time to pay. You can do this by making a Time to Pay arrangement through your Government Gateway account, provided you have filed your latest tax return, owe less-than £30,000, are within 60 days of the payment deadline, and plan to settle your debt within the next twelve months.

If you don’t fulfil the criteria above (for example, you will not be able to pay the full amount within the next twelve months, or you owe more-than £30,000) then you can call the self-assessment helpline on 0300 200 3822 between 8am and 4pm, Monday to Friday, and they will help you arrange an alternative.

A vital update from HMRC…

On January 6, HMRC announced that it would resume waivers from last year meaning that:

• Those who file online by February 28, 2022, will not be charged late filling penalties, and…
• Those who pay the tax due in full, or set up a payment plan by April 1, 2022, will not be charged late payment penalties (5%)

This update gives people more time to pay their taxes and should enable you to get your affairs in order without undue worry. However, HMRC still advises everyone to get their tax returns in on time, as the January 31 deadline still stands. This means that, even though you have more time to pay and will not be charged late filling and payment penalties, you will still be charged interest as usual (2.75%, from January 2022) on late payments. Aside from the waivers detailed above, this tax year remains unchanged.

If you need more information, or require specialist help with your tax payments, call JW Hinks on 0121 456 0190, and our friendly and professional tax team will help you figure out your next steps.