Why should you file your Self-Assessment Tax Return before Christmas?

If you are required to submit a self-assessment tax return for the 2020/21 tax year, it’s recommended you file it before Christmas – to ensure you’re well within the deadline of the 31st January 2022. This blog explains more about the importance of beating the deadline, and we explain who needs to complete a tax return. There are also a few eye-opening facts about the submission of tax returns during the Christmas period. Keep reading to find out more.

2,700 customers filed their Self-Assessment Tax Return on Christmas Day

The deadline to submit a self-assessment tax return is on the 31^st of January. Every year, HMRC sees thousands of taxpayers using the festive period to get their documents in order and to submit their tax returns.

Karl Khan, HMRC’s Interim Director General for Customer Services, said:

“Online Self Assessment means customers can do their tax returns at any time, day or night – even on Christmas Day if they want to.”

“We’re here to help customers get their tax right, and there’s support available 24/7 like help sheets, webinars and YouTube videos. Search ‘Self Assessment’ on GOV.UK to find out more.”

In total, 31,400 customers submitted their 2019/20 tax returns between the 24^th and 26^th December 2020:

• Christmas Eve: 20,200 tax returns were filed – the peak time for filing was 11:00 to 11:59 when 2,892 returns were submitted
• Christmas Day: 2,700 tax returns were filed – the peak time for filing was 14:00 to 14:59 when 214 returns were filed
• Boxing Day: 8,500 tax returns were filed – the peak time for filing was 15:00 to 15:59 when 858 returns were filed

Do I need to complete a Self-Assessment Tax Return?

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

• Self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on)
• A partner in a business partnership

You are not required to file a tax return if your only income is from your pension or wages. However, you will need to submit a tax return if you receive any other untaxed income, for example:

• Income from renting out a property
• Income from savings, dividends and investments
• Foreign income
• Tips and commission
• Some COVID-19 grants or support payments

Reporting coronavirus grants and support payments

If you received a grant or payment to support you during COVID-19, you might be required to report this on your tax return if you are:

• In a partnership
• A business
• Self-employed

What payments do you need to report?

You need to report the following grants and COVID-19 support payments if you received any of the following:

• Coronavirus Statutory Sick Pay Rebate
• Coronavirus Business Support Grants
• The Self-Employed Income Support Scheme (SEISS)
• The Coronavirus Job Retention Scheme (CJRS)
• Test and trace or self-isolation payments in England, Scotland and Wales
• Eat Out to Help Out

How to report a grant or payment

Self-Assessment Tax Return

SEISS payments should be listed in the Self-Employment Income Support Scheme Grant box on your Self-Assessment Tax Return. You should record all other taxable COVID-19 payments in any other business income box.

Company Tax Return

If you received a CJRS grant or an Eat Out to Help Out payment, you will need to do the following:

• Include the grants as income when calculating your taxable profits in line with the relevant accounting standards
• Report the grant separately on your company tax return using the CJRS and Eat Out to Help Out boxes

When you calculate your taxable profits, all other taxable COVID-19 payments should be recorded as income.

Beat the rush and file before Christmas

There is a £100 penalty if you miss the filing deadline on the 31^st of January 2022. So, when is the best time to file your 2020/21 self-assessment tax return? At Churchill Knight, we recommend beating the Christmas rush and submitting your tax return soon.

We understand it’s a busy time of year which is why you can appoint our expert team to complete and file your self-assessment tax return. They will take care of everything for you, from completing the forms and calculating your tax liability or refund to submitting it to HMRC on your behalf – leaving you with more time to unwind at Christmas!

Contact our expert team today

Since Churchill Knight & Associates Ltd was founded in 1998, we’ve helped over 20,000 people with the filing of their self-assessment tax return, and we look forward to helping many more. If you are interested in our self-assessment tax return service, please give our friendly team a call on 01707 871622 or complete the short form on our website to get started.