Self assessment tax return: HMRC urged to extend deadline 'ASAP' as SEISS problems emerge

SELF assessment tax returns are now due in exactly two weeks time and many self-employed workers will be rushing to complete their payments. Recent analysis revealed millions of workers may miss this deadline and given the impact of coronavirus and SEISS, calls have emerged for the government to extend the deadline.

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has been urged to extend the self assessment tax return deadline as millions of self-employed workers struggle with and complicated SEISS interferences. As it stands, self assessment tax returns for the current year must be filed and paid by January 31.

Generally, every year a large amount of people miss the deadline but Kevin Sefton, the CEO of untied, the personal tax app, warned the numbers could jump this year: "A million people miss the January 31 tax deadline most years.

"But it looks like there’s going to be an even higher number this year because of COVID-19 and related knock-on effects.

"Whilst a delay isn’t the sort of thing that HMRC will agree to readily, we are calling for an extension to the filing deadline AND the payment deadline this year as a one off."

Kevin went on to explain how recent rule changes concerning the latest lockdown could make the situation even more difficult.

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Self assessment

Self assessment deadlines are quickly approaching (Image: GETTY & HMRC )

Kevin continued: "With millions of children facing home-schooling, this will put further pressure on their self-employed parents, many of whom have already been overlooked by SEISS.

"A deferment for filing and payments will reduce the burden on individuals.

"We think that HMRC should recognise the exceptional pressure people are under at the moment and anything that it can do to help – by way of a deadline extension, without having to appeal/apply for it - should be implemented as soon as possible.

“However if you are a taxpayer, our one piece of advice is if you can get your tax return in ahead of schedule, do so!”

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The Government warns if HMRC are not paid by the deadline, affected individuals will be charged interest and may have to pay an additional penalty.

It should be noted that while there are many methods for covering the payment, the timings for processing them could vary.

These timings will need to be factored in by those who have left it to the last minute.

This is especially importnant to note as HMRC are likely to be slow this year given the impact of the lockdown.

SEISS

SEISS may impact self assessments (Image: EXPRESS)

The full details on payment timings are laid out below:

  • same or next day: Online or telephone banking, CHAPS, debit or corporate credit card online, at a physical bank or building society
  • three working days: Bacs, direct debit (if it has been set up with HMRC previously), by cheque through the post
  • five working days: Direct debit (if it has not been set up before)

For those who have already filed in their self assessment tax return, it may be possible to pay the bill in instalments.

If a person cannot afford to pay their latest bill in full, they can set up a payment plan to cover the cost across the year so long as they owe £30,000 or less and do not have any other payment plans or debts with HMRC.

Should this option be taken, people will be able to choose how much they want to pay straight away and how much they'll cover on a monthly basis going forward.

It should be noted if this option is taken interest will be added to the bill and HMRC can demand full payment if repayments are missed.

Self-employed individuals who have also received a grant from SEISS will need to report the funds on their tax returns, even though the grants themselves will not need to be repaid.

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