Well as I write this, we have just finished the tax return season.

This was done last year but we were all still very much still suffering from the effects of lockdown, both financially and physically in our ability to ‘get things to each other,’ so it was a great help. In my personal opinion, believe this extension was in reality so that HM Revenue and Customs beleaguered systems and staff could buy a bit more time.

This year however the extension also brought confusion and stress. Many of our beloved clients were just so battered and bruised by the last few years that we more or less had to carry them over the line. However nationally, over one million people still submitted their returns during February.

A word from the heart to those of you who if you still haven’t submitted your tax return. According to HMRC, there are about “1.3m customers who were expected to file by the 31 January deadline but did not do so by 28 February”.

As well as Interest rates of 2.75% being attached to outstanding tax returns since 1 February, increasing to 3% on the 21st, meaning that any of you who didn’t make the original deadline still end up out of pocket. As many of you probably know late filers are also looking at a £100 penalty, and if people continue not to file, these carry on, so please even if you missed the boat, jump on a canoe, and get it sorted (stop stretching your metaphors please…The Editor).

If you are subject to penalties, but still need to get that return done, you do have options. HMRC says:

“We understand some customers might be worrying about paying their self-assessment bill this year, and we want to support them. To see if you’re eligible to set up a payment plan, go to gov.uk and search ‘pay my self-assessment’.”

We have always advised people to seek to set up payment plans, sometimes it does mean an uncomfortable talk with a revenue officer online, but you do have the Taxpayers Charter on your side, which in effect says you must be treated fairly.

THE SEISS GRANT: A WARNING

Even though the tax returns are in, I have a warning for everyone, which may mean many people will have to take the opportunity to amend their return (yes, it is allowed, best done by an accountant).

You could over the pandemic apply for up to five separate self-employed income support scheme (SEISS) grants between May 2020 and September 2021, but the day of reckoning was this tax year, and the grants must either be taxed or repaid.

You should have:

• Accepted that, they are taxable, oh yes, they are. So sorry people they must go on the tax return.
• Made sure your accountant knew. The grant had to be applied for directly so there was no way for accountants to automatically know. If you ‘by mistake’ forgot to tell your accountant HMRC will follow it up, their systems are scarily good.
• Included details of the SEISS in you trading income if you claim working tax credits or universal credit.

AND FINALLY FOR THE UNTAXED

I cant go without also mentioning what happens this April. From April 2022 taxi and private-hire drivers will have to pass tax checks before renewing or applying for their licenses. It’s called Conditionality.

If you are paying tax no need not worry, your licensing process will just take a little longer. If you are not registered for tax, don’t panic. You need to think about registering.

Just a word of advice; tax software on its own isn’t enough, if you haven’t been registered for a long time you will need some help, which an accountant can do with you and for you. It’s something us trade accountants do quite regularly. You can find out more in https://eazitax.co.uk/resources/booklets look for our Tax Jargon Buster, don’t worry it a free resource.

Drive Safe

Gary

This article was originally published in Professional Driver Magazine, March 2022 Issue.