Everyone, whether self-employed, business owners, limited companies or employers, needs to make sure that they meet all of the relevant tax year dates and deadlines to avoid a fine or other penalty.
2020 is no different. However, some deadlines may be different to normal due to circumstances created by COVID-19. So, make sure you are aware of any changes to tax year dates and any tax deadline extensions.
Self-assessment 2020 Tax Year Dates
The last tax year started on the 6 April 2019 and finished on the 5 April 2020. You must complete a self-assessment tax return if during this period you were:
- Self employed as a ‘sole trader’ and earned more than £1,000
- A partner in a business partnership
You may also need to complete one if you have untaxed income. This includes things such as money earned from renting out a property or foreign income.
You can also choose to complete a return – in order to claim income tax relief or to prove you are self-employed.
Check if you need to complete a self- assessment tax return here.
If you do need to complete a self-assessment tax return, there are a number of ways to do so and also a number of tax year dates you’ll need to meet.
Self-assessment registration deadline
If you did not complete a self-assessment in the previous year then you must register with HMRC before you can do so. Exactly how you register varies depending on your employment status so check the gov.uk website for details on this.
The deadline to register for self-assessment is the 5th October 2020.
If you are self-employed then you need to ensure that you register by the 5th October in your businesses second tax year. You can be fined if you fail to do so.
Once you have registered you can then choose how to complete your tax return. Either using the online service, or by completing a paper return. Again, tax year deadlines vary depending on which you use so be aware of this when you decide which to use.
2020 online tax returns deadline
The deadline for online self-assessment tax returns is midnight on the 31st January 2021.
2020 paper tax returns deadline
The deadline for paper self-assessment tax returns is midnight on the 31st October 2020.
2020 payments on account deadline
Some choose to make use of the ‘payments on account’ system which effectively means making advance payments towards your tax bill. Using this system means you will make 2 payments in a year. The deadlines for these payments are usually the 31st January and the 31st July.
But because of COVID-19, in 2020 the deadline for the second payment has been extended. The second payment is usually due on the 31st July, but this has been extended to the 31st January 2021. You won’t be penalised (or pay additional interest) if you delay making your second payment, as long as it is paid in full by the 31st January 2021.
What are the 2020 PAYE Deadlines?
PAYE tax deadlines vary depending on whether you pay monthly or quarterly.
- If you pay monthly, then the deadline is the 22nd of the next tax month
- If you pay quarterly, then the deadline is the 22nd after the end of the quarterg. if the quarter ends on the 6th July, payment will be due on the 22nd July.
Deadlines are the 19th month for those who pay by cheque through the post.
What are the 2020 VAT Deadlines?
Most businesses submit a VAT return every three months. This is known as the ‘accounting period’
Deadlines for submitting and paying the return are typically 1 calendar month and 7 days after the end of the accounting period.
The government set up a VAT payment deferral scheme during Coronavirus which was active between 20 March 2020 and 30 June 2020. However, this has now ended. Any VAT payments that you deferred during this period need to be paid in full by the 31st March 2021.
For those payments due after 30 June, then you must continue to file a VAT return on time and pay in full as normal working to your normal deadlines.
Some businesses also pay their VAT bill annually or via a process called ‘payments on account’ so check gov.uk for full information on tax deadlines for these.
As a small business owner or self-employed individual, there are lots of things to keep on top of when it comes to running your business. A key one of these is paying all of your tax liabilities’ correctly and on time. And another is having the appropriate small business insurance in place to protect yourself, your business and your clients. And this is something we can help and support you with at Anthony Jones. We’ll get to know your business and potential risks and provide our advice on the insurance covers you’d benefit from having in place. Get in touch with us today.