Smarter accounting

Pay your personal tax return by the end of January

10 January 2022, Advocates, Barristers, Creative Industries, Musicians, Sole Traders

Don’t forget to pay your personal tax turn by the end of January.

Pay your tax by end of Jan

Who has to file a personal tax return?

If you are self-employed or you are director of a limited company, you need to register with HMRC for self assessment tax returns in most cases.  You need to pay your personal tax by 31st January 2022 to avoid any interest charges for your 2020-21 tax year.

Hasn’t HMRC extended the filing deadline?

HMRC announced on 6th January 2022 that they are waiving late filing and late payment penalties for Self Assessment taxpayers for one month – giving them extra time, if they need it, to complete their 2020 to 2021 tax return and pay any tax due.

HMRC is encouraging taxpayers to file and pay on time if they can.  Of the 12.2 million taxpayers who need to submit their tax return by 31 January 2022, almost 6.5 million have already done so.

HMRC recognises the pressure faced this year by Self Assessment taxpayers and their agents.  COVID-19 is affecting the capacity of some agents and taxpayers to meet their obligations in time for the 31 January deadline.  The penalty waivers give taxpayers who need it more time to complete and file their return online and pay the tax due without worrying about receiving a penalty.

The deadline to file and pay remains 31 January 2022. The penalty waivers will mean that:

  • anyone who cannot file their return by the 31st January deadline will not receive a late filing penalty if they file online by 28th February
  • anyone who cannot pay their Self Assessment tax by the 31st January deadline will not receive a late payment penalty if they pay their tax in full, or set up a Time to Pay arrangement, by 1st April 2022

A similar extension was granted by HMRC in 2021.

What will happen if I pay my tax after January?

Interest will be payable from 1st February, as usual, so it is still better to pay on time if possible.

When is my VAT return due?

If your VAT quarters end in December, March, June and September, your latest VAT return is for the period 1st October 2021 to 31st December 2021.  This return must be filed by 7th February 2022.

Your accounts need to be brought up to date to 31st December before your VAT return can be filed.  If Alterledger is your accountant, we will already have asked for your December bank statements to confirm the balances in Xero.  If you haven’t already sent your December bank statement, please do this as soon as possible!

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