Tax Return Deadline

It’s not long now until the tax return filing deadline, 31 January 2021. Please remember that your liability should also be paid by this date… If you are unable to make the payment within the deadline, you should contact HMRC to discuss a “Time to Pay” arrangement.

How do I make the payment?

Payments can be made in a number of ways:

• Direct debit
• Debit card or corporate credit card – please be aware that you cannot pay using a personal credit card; you will also be charged if you use a corporate credit card
• Bank transfer, including BACS and CHAPS – if you choose to pay by bank transfer, there are two possible accounts:
  • HMRC Shipley – 12001020
  • HMRC Cumbernauld – 12001039
  • Both have the sort code 08-32-10
• Cheque (these should be made payable to “HM Revenue and Customs only” and you should write your reference on the back)
• Through your tax code (this method only applies if you have submitted your return before 30 December)

What reference should I use when making the payment?

Your payment reference will always be your unique taxpayer reference (UTR) followed by the letter “K”.

The amount I have to pay is higher than expected, why is this?

If your tax liability for the year ended 5 April 2020 is higher than £1,000, you’ll need to make payments on account towards the current tax year. The payment on account is calculcated as 50% of your liability after accounting for any amounts collected via PAYE; the first is due by 31 January 2021 and the second by 31 July 2021. If your income is expected to be reduced compared with the year ended 5 April 2020, you can apply to reduce these.

This may also be COVID-19 related – if you opted to take advantage of the deferral of the payment on account due by 31 July 2020, this is now payable.

Should you have any questions regarding the tax return deadline or payment, please contact me.