As some of you may know, we recently collabed with Earnr to bring you some info all about tax, self assessments, and the deadline. As it happens, the deadline is today – January 31st. However, due to the pandemic HMRC has delayed the late payment penalty until next month. Earnr have kindly have produced another blog all about this with everything you need to know below.
What’s different about this tax year?
HMRC likes to keep you on your toes when it comes to your Self Assessment tax return. This year is extra special as it will be the first tax year submission since the UK’s first lockdown in early 2020.
The Self Employed Income Support Scheme (SEISS)
During the Pandemic, the UK government gave out many grants to self-employed people. These were give to people who were adversely affected by the coronavirus pandemic.
The UK Government gave out three grants before April 2021. If you received any money through these grants then make sure you include them on your tax return.
Like your normal Thortful earnings, this grant is taxable. Rather than including them in your total income, HMRC has added a dedicated box in this year’s return for the SEISS grants.
COVID-19 Related Grants
There are other COVID-19 related grants during the 20/21 tax year which are also taxable. These include; 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.
No late submissions penalty until 28 February
Due to COVID, HMRC has waived the late submission penalty until 28 February
While you don’t get fined, HMRC will still treat your submission after 31 January as a late submission. This could impact the interest you pay on late payments.
This blog post has been prepared by Earnr and not by Thortful. The content in this blog post is of a general nature, for information purposes and should not be relied on as advice. You should seek advice from a tax professional, who will be able to advise you based on your specific circumstances.