|Have you paid your July 2021 tax?
A reminder that your second instalment of self-assessment taxes was due 31 July 2021
If you have already made payment to HMRC of your second instalment of self-assessment tax due by 31 July 2021, no need to read this alert. If not, and this has slipped your mind, pay as soon as you can.
You can login to your tax account to download the most recent statement that should set out how much there is to pay. If you are unsure how to do this or want us to check the numbers due for you, please call. If you are short of funds and unable to make payment immediately the following notes set out how to approach HMRC to spread payments and also list late payment penalties that may be applied. If you cannot pay your July instalment
You can set up a plan with HMRC to spread the cost of your Self-Assessment bill if: You owe £30,000 or less. You do not have any existing payment plans or debts with HMRC. Your tax returns are up to date. It is less than 60 days after the payment deadline. You can set up a plan online or by calling the Payment Support Service on 0300 200 3822.
Penalties and interest for late payment
If you delay paying your tax by:30 days – you’ll have to pay 5% of the tax you owe at that date.6 months – you’ll have to pay a further penalty of 5% of the tax you owe at that date.12 months – you’ll have to pay a further penalty of 5% of the tax you owe at that date. These penalties are in addition to any penalties for sending your tax return late.
HMRC will also add interest to any taxes that are unpaid after the due date.
Please call if: You would like us to check and see if it might be possible to reduce tax due 31 July 2021. For example, this might be possible if your self-assessment profits for 2020-21 are lower than those for 2019-20.You need help accessing a recent statement to see how much you owe, or details of which bank account to pay, or you would like us to work out the best approach to HMRC to spread the cost of taxes due.
Residential property sales – 30 days to report taxable gains.
Do not get caught out! Penalties will be charged for late returns.
Since April 2020, taxable gains on the sale of UK residential properties have had to be paid with in 30 days. Taxpayers are required to file a return and pay the tax due on residential property sales within 30 days of completion. This will typically apply to the sale of rental properties and second homes.
We would recommend reviewing the capital gains position of relevant properties well in advance of sale so that there is time to collate information on costs and availability of reliefs prior to the deadline for CGT return submission.
For more information see our article at 30 days to pay capital gains tax If you sell chargeable UK residential property | SJB & Co Chartered Accountants (sjbtax.co.uk) or call us to discuss.
Tax return time?
Now that we are nearly four months beyond the end of the tax year, it is time to start preparing tax returns for last year as most details should be available from employers, banks and brokers. So why not get ahead with your tax return now? You may even find that you are due a refund or at least will know your liabilities earlier and can plan for them.
The Self-assessment tax return deadline for paper returns is 31 October and 31 January 2022 for online filing. Clients are asked to forward their details as soon as available so that we can complete returns and advise tax liabilities at an early date.
| For more information or to discuss any issues raised above please contact Simon Bell by phone on 01376 571358 or email [email protected] .Please feel free to forward this newsletter to any colleagues or friends who may be interested in it.
This newsletter is written in general terms and therefore cannot be relied on to cover specific situations; applications of the principles set out will depend on the particular circumstances involved and it is recommended that you take professional advice before acting or refraining from acting on any material in the newsletter.