When is the tax return deadline and what happens if I miss it?

Tax will be on a lot of people’s minds at the moment, as the deadline for filing the self-assessment forms looms once again.

While the tax year runs from April to April, the last date for submitting returns for those who do self-assessment is in January – and you could find yourself in trouble if you don’t get the form in in time, along with any tax you owe.

So just when is the deadline – and what happens if you miss it?

Here’s what you need to know…

When is the tax return deadline?

The deadline for filing your tax return, along with any money you owe, is midnight on January 31.

You will need to fill in a tax return if you are one of the following:

• Self-employed with an income of more than £1000
• A partner in a business partnership

You do not need to fill in a tax return if you are in employment and your only income is from your wages, or if you are retired and your only income is from your pension.

However you may need to if you earn untaxed income from elsewhere – such as from Covid grants, renting out a property, income from tips, investments and dividends, or from overseas.

You can check at the Government’s website whether or not any of the above apply to you – as well as finding the form to fill in for filing online, if you have not already done so.

What happens if you miss the deadline?

This year, due to the Covid pandemic, the deadline for filing your return and any money you owe has been extended to February 28.

However, the costs incurred for filing your return late remain the same, and will apply from March 1 onwards.

You will receive a £100 fine if you are late filing your return, followed by an additional £10 for every subsequent day it is not filed – even if you don’t actually owe any tax.

This is capped at a maximum of £900 for 90 days – but you face a further £300 or 5% of what you owe if it is more than six months late, with an additional £300 if it is a year or more late.

You will also be charged interest on any payments you make late.

If you are concerned about being able to pay your bill, you should get in touch with HMRC about setting up a Time To Pay arrangement – which can give you the opportunity to pay off what you owe in manageable instalments.

You should do this no later than April 1, 2022.

MORE : Working from home tax relief worth £125 a year ‘set to be scrapped’

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