What to look out for in the 20/21 tax return
HMRC likes to keep you on your toes when it comes to your Self Assessment each year. This year’s return is even more interesting as it will be the first tax year submission since the UK’s first lockdown in early 2020.
Some important things to keep in mind for your 20/21 tax return:
The Self-Employed Income Support Scheme (SEISS)
SEISS grants are taxable and need to be reported in the tax year in which they were received. That means that grants one, two and three need to be included in your 20/21 tax return.
Rather than including them in your total income, HMRC has added a dedicated box on this year’s return for the SEISS grants.
COVID-19 Related Grants
Other COVID-19 related grants during the 20/21 tax year are also taxable. This includes self isolation payments, coronavirus statutory sick pay rebates, and grants you received from your local authority. HMRC has listed the most common grants on their website.
Relief for late submissions
HM Revenue and Customs (HMRC) is waiving late filing and late payment penalties for Self Assessment taxpayers for one month.
This means that anyone who cannot file their return by the 31 January deadline will not receive a late filing penalty if they file online by 28 February.
While you don’t get fined, HMRC will still treat any submission after 31 January as a late submission. It’s therefore better to submit your Self Assessment by 31 January if you can.
How can Earnr help?
Earnr automates your day-to-day business and finance admin so you have more time to focus on growing and creating. Earnr can automate your tax return in just 17 minutes. Visit the app store to get started today.