HMRC waived the March late fee payment for self-assessed taxpayers – however curiosity will nonetheless be charged

Even if you didn’t submit a return, appreciate what you owe and pay for it ASAP

Ideally, you should file a tax return as soon as possible because you know exactly how much tax you owe. However, with interest on outstanding payments starting February 1, HMRC believes it is best to make an estimate of your current debt, pay it and adjust it as needed once you have the final invoice:

  • You may already have an estimate of how much you owe. For example, you might have an idea because you should be making a late payment on account by July 31, 2020, or you might be pretty sure you have nothing to pay for.
  • HMRC has a tool that can help – but you need to have a rough idea of ​​your income. The estimated income tax for a tool from the previous year gives a rough estimate of your debt for 2019/20. You will be asked to enter “Income”, but HMRC states that if you include your income from other sources as well, an estimate will be made. You will also need to provide other information, such as: B. Interest you have earned and donations for gift aid you have made. This will calculate a rough number.

    The HMRC also has a self-assessment tax calculator that is specifically aimed at the self-employed and may also give you an idea. However, it is now set up to estimate your tax bill for 2020/21 rather than 2019/20.

    Keep in mind that either is just a rough tool for making an estimate. So if your tax matters are complex or you think the number provided is wrong, always double-check before making a payment. We didn’t get a lot of feedback on the tools. If you do use them, let us know how to get to the forum thread.

Once you have an estimated amount for your debt, you can still pay the normal way – online, through your bank, or by mail – although you will no longer be able to pay with a personal credit card or through the post office. If the estimated amount you pay is less than the amount you actually owe, you can make up the difference later and have at least some of the late payment interest reduced. If you overpay, you will receive a discount in due course.

Are you having trouble paying? You can sign up for a repayment plan, but you must submit it first

Those who owe taxes between £ 32,000 and £ 30,000 can use HMRC’s Enhanced Time to Pay mechanism to agree on a repayment schedule that spreads that tax burden and can be paid back by direct debit over a period of up to 12 months.

You do not need to be by the January 31st registration deadline to use the service, but you must have submitted a return before you can use it. If you’re having issues with payment, submit a return ASAP and contact HMRC to sign a repayment plan.

If you have been unable to pay for any reason, speak to HMRC urgently

While HMRC continues to charge interest on late payments, if you have a reasonable excuse for not paying your tax on time, reach out to them and explain. This is usually something unexpected or out of your control that has prevented you from paying a tax liability. For example:

  • Your partner or another close relative died shortly before the tax return or the payment deadline.
  • You had an unexpected hospitalization that prevented you from going through your tax affairs.
  • You have had a serious or life-threatening illness.
  • Your computer or software failed shortly before or while preparing your online return.
  • Problems with the online services of the HMRC.
  • A fire, flood or theft prevented you from completing your tax return.

If you are unable to file your tax return by February 28 due to a coronavirus issue, HMRC may waive the £ 100 fine that you could face, although it has not specified exactly what scenarios this could involve.

Self-employed and high earners have to submit tax returns for self-assessment

If you have not yet submitted a tax return for self-assessment for 2019/20 and are wondering whether you should have done so, you must submit a tax return if one of the following conditions is met in the 2019/20 tax year:

  • You were self-employed and had an income in excess of £ 1,000.
  • Your income was over £ 50,000 and you or your partner applied for child benefit.
  • You have made more than £ 2,500 from property rentals or other untaxed income such as tips or commissions.
  • You have made more than £ 100,000 in taxable income.
  • You have made £ 10,000 or more before tax from savings, investments, stocks or dividends.
  • You earned or lived abroad income and had a UK income.
  • You must pay capital gains tax.
  • You have received income from a trust.
  • Your state pension was more than your personal allowance and your only source of income (unless you received your pension on or after April 6, 2016).
  • HMRC advised you that you have not paid enough tax in the past year (and that you have not yet paid using your tax code or voluntary payments).
  • You submitted a self-assessment tax return last year (even if you did not owe any tax). You must do this unless HMRC has already written you not to submit a file.

Here are the other important things you need to know:

  • You must be registered to file a tax return online. The first time you are submitting a return, you can register on the HMRC website. HMRC will then set up your online self-assessment account and send you a letter with your unique tax reference – a 10-digit code that you need when you log in for the first time. This can take up to 10 working days.

    If this is your first time filing online but already have a reference number, e.g. For example, if you have previously submitted a paper return, you should skip this step and simply register for the online service.

  • You can retrieve forgotten login / password information via Gov.uk. You need to log into your self-assessment account with your Government Gateway ID or with Gov.uk Verify.

    – Did you forget your Government Gateway details? You can get your user ID or reset your password online.
    – Did you forget to check your Gov.uk details? You will need to use the forgotten username or password of the provider who verified your identity. See Gov.uk for more.

    If this is the first time you log into your self-assessment account and have forgotten your unique tax reference number, you should be able to find it in previous tax returns or in other documents from HMRC, e.g. B. in payment reminders. It’s also available on your HMRC online account. If you cannot find your unique reference, call the self-assessment hotline on 0300 200 3310.

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