HMRC shifts self-assessment deadline to Feb

Last Updated on 7 January 2022

For the second year running HMRC have moved the deadline for filing your income tax self-assessment back to Feb instead of the usual 31st January.

Paperwork

They’ve relented to pressure from accountancy and other bodies because so many people are off with covid and might not be able to get everything done in time.

If you have a tax bill due by 31 Jan, it’s a good idea to pay it straight away. They’ll charge you interest for every day from 1st Feb onwards.

You can read all about it here:

https://www.gov.uk/government/news/hmrc-gives-self-assessment-taxpayers-more-time-to-ease-covid-19-pressures

Just because you can, doesn’t mean you should

This just gives me the opportunity to remind you that you don’t have to wait until January every year to submit a tax return.

You can submit your tax return right after the end of each tax year on 5th April.

Turn record keeping into a weekly habit

Abacus

There’s no magic to this. Just keep your records ticking over by taking ten minutes every week to update everything. Turn a boring job into a habit, and you won’t even notice.

When the tax year comes to an end there will be nothing to do except transfer the figures into the tax return, or email them to your accountant if you have one.

This has the advantage of letting the tax office know early what your year looked like, so any bill you get will be accurate. And any rebate you’re due will come quicker.

You certainly won’t be paying tax any earlier, and you’ll feel very smug.

From 2024 you won’t have a choice

HMRC logo

Getting into this habit is a good idea anyway. From April 2024 sole traders will have to keep records as they go along using special accounting software.

See my earlier posts on HMRC’s Making Tax Digital project.

Getting into the weekly habit now will get you ready for this sparkly digital future.

Posted on 07 January 2022

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