Self Assessment tax – missed the 31 January deadline?

Date: January 31, 2022

Self Assessment tax return deadline is today, 31 January 2022 for the tax year 2020/21. this covers the tax period between 6 April 2020 and 5 April 2021.

Whilst 12.2 million taxpayers are expected by HMRC to complete a tax return for the 2020/21 tax year, as of 24 January, around four million of these were still left to file their return.

In 2021, HMRC estimated that 1.8 million tax returns were filed late after 31 January 2021 deadline.

If you are one of the many people who are still yet to file their tax return and are unable to do so by today’s deadline, completing it as soon as possible will help to mitigate any unnecessary charges and penalties.

Self Assessment late filing and late payment penalties waivered for one month

Earlier this month, HMRC announced that it is waiving penalties for one month relating to the late filing and late payment of 20/21 tax returns. Whilst this will help anyone still yet to file a return or make a payment. Do remember that interest will still be charged on any tax that remains outstanding after 31 January 2022. More information on this is available in our recent article here.

Help with your tax return – HMRC Self Assessment resources

HMRC has produced a wide range of content regarding Self Assessment to assist individuals completing a return and calculating their tax. This includes a series of YouTube videos and these can be viewed here. Videos include advice for those filing a return for the first time, as well as more specific advice, such as how to add a service through your business tax account.

Self Assessment tax for crypto tax

A growing area of interest for HMRC is crypto. Many people who invest or trade in crypto may have recently received a letter from HMRC or a crypto exchange regarding paying crypto tax.

At Alexander & Co we advise a wide range of individuals and businesses on crypto tax. Whilst it can be complicated to calculate when inputting into a Self Assessment tax return, our experience tax team is able to assist in this specialist area. Further information on how crypto is taxed can be found on our website here.

Hiring an accountant to assist you

If you are yet to finalise your 20/21 tax return, hiring an accountant may proved the easiest option. They can help you complete this year’s return as soon as possible (minimising any penalties or fines) and can make sure your return is accurately reported, avoiding any errors in rushing it yourself.

Even if you managed to complete this year’s return, but found it time consuming or complex, employing an accountant for future years will provide piece of mind. Whilst January 2023 is sometime away, talking to an accountant now, will ensure you are fully covered and not in the same position this time next year.