Why should you file your Self-Assessment Tax Return at the end of the year?

This blog discusses the significance of meeting the deadline, as well as who is required to file a tax return. There are also some eye-opening facts concerning filing tax returns during the Christmas season. Continue reading to learn more.

On Christmas Day, 2,700 consumers filed their Self-Assessment Tax Return.

The deadline for submitting a self-assessment tax return is January 31st. Every year, HMRC sees thousands of people use the holiday season to organise their records and file their tax returns.

Between the 24th and 26th of December 2020, 31,400 clients filed their 2019/20 tax returns:

Christmas Eve: 20,200 tax returns were filed; the highest filing period was 11:00 to 11:59 a.m., when 2,892 returns were filed.

Christmas Day: There were 2,700 tax returns filed, with the peak hour for filing being 14:00 to 14:59, when 214 returns were filed.

Christmas Day: There were 8,500 tax returns filed; the peak time for filing was between 15:00 to 15:59, when 858 returns were filed.

Is it necessary for me to file a Self-Assessment Tax Return?

You must file a self-assessment tax return if you were: in the previous tax year (6th April to 5th April):

Working as a 'sole trader' and earning more than £1,000 (before taking off anything you can claim tax relief on)

A business partnership's partner

If your main source of income is a pension or salary, you are not required to file a tax return. You must, however, file a tax refund if you get any additional untaxed income, such as:

• Earnings from property rental
• Savings, dividends, and investment income
• Foreign earnings
• Commissions and tips
• Some COVID-19 grants or assistance payments

Grants and support payments for coronavirus

You may be obliged to record a grant or payment received to help you during COVID-19 on your tax return if you are:

• In a collaboration
• A company
• Self-employed

What payments must you report?

If you received any of the following grants or COVID-19 support payments, you must record them:

• Statutory Sick Pay Rebate for Coronavirus
• Grants for Coronavirus Business Support
• The Scheme for Self-Employed Income Support (SEISS)
• Coronavirus Job Retention Program (CJRS)

Payments for test and trace or self-isolation in England, Scotland, and Wales

• Eat out to contribute
• How to Document a Grant or Payment

SEISS payments should be reported on your Self-Assessment Tax Return in the Self-Employment Income Support Scheme Grant box. All other taxable COVID-19 payments should be recorded in any other business income box.

Tax Return for a Corporation

If you were awarded a CJRS grant or an Eat Out to Help Out payment, you must complete the following tasks:

• In accordance with the applicable accounting principles, include the grants as income for calculating your taxable profits.
• Use the CJRS and Eat Out to Help Out boxes to report the grant separately on your corporate tax return.
• All other taxable COVID-19 payments should be recorded as income when calculating your taxable earnings.

File before Christmas to avoid the rush.

If you miss the filing date on January 31, 2022, you will be fined £100. So, when is the optimum time to file your self-assessment tax return for 2020/21? At Cheap accountant in London, we advocate beating the holiday rush and filing your tax return as soon as possible.

Because we appreciate that this is a hectic time of year, you can engage our skilled team to complete and file your self-assessment tax refund. They will handle everything for you, from filling out forms and calculating your tax liability or refund to sending it to HMRC on your behalf - giving you more time to relax during the holidays!