HM Revenue and Customs (HMRC) is 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 2020/21 tax return and pay any tax due.
However, HMRC is encouraging taxpayers to file and pay on time if they can, as the department reveals that, of the 12.2 million taxpayers who need to submit their tax return by January 31, 2022, almost 6.5 million have already done so.
Anyone who cannot pay their Self Assessment tax by January 31 will not receive a late payment penalty if they pay their tax in full, or set up a time to pay arrangement, by April 1.
The time-to-pay service allows people or businesses needing the option to spread their tax payments over time. Self Assessment taxpayers with up to £30,000 of tax debt can do this online once they have filed their return.
Interest will be charged from February 1 on any amounts outstanding, as usual, so it is still better to pay on time if possible, HMRC said.
If you are able to file your Self Assessment by the 31st, but you’re just putting the paperwork off, David Beard, CEO of Lendingexpert.co.uk - who has been filing tax returns every year since 2006 and never missed a deadline - shares his tips for getting it done on time.
Research shows that the average Self Assessment tax return takes approximately two and half hours to complete online.
That means if you set aside just 12 minutes a day between now and the end of the month, you should complete it and won’t have it hanging over your head for the whole of February.
On average, adults in the UK spend over an hour on social media every day, so all you need to do is cut down your social media scrolling by 20% every day until the end of the month.
Top five tips to get your tax return done on time
Set a realistic plan and stick to it no matter what gets thrown at you
Commit to spending 12 minutes a day on your Self Assessment tax return between now and the end of the month.
Promise to reward yourself
Reward yourself once it’s completed, but reward yourself with something you enjoy every time you spend 12 minutes on it, even if it’s just sitting down to watch an episode of your favourite TV show.
Minimise distractions
For those 12 minutes, put your mobile phone on silent mode and place it face down. Collapse all other tabs on your desktop or laptop and only have the ones you need open. If you’re working from home and the kids and dog are around your feet, lock yourself away in another room to complete your 12 minutes.
Ask someone to check you’ve spent 12 minutes on it every day
Get someone to ask you every day if you’ve spent 12 minutes on your Self Assessment. Your husband, your wife, your mother, your father, your kids, your postie...It doesn’t matter who - but be accountable to somebody.
Stop over-complicating things
Perfectionism is one of the biggest reasons for procrastination. If you’re waiting for a perfect time to do your Self Assessment, there will always be reasons standing in your way to put it off.
If you keep waiting for the ideal time, it will never come.
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