Self-Assessment Income Tax Disclosure Warning: Covid Grant Recipients Could Be Caught Off guard | Personal Finances | Finance

HMRC’s self-assessment system collects income tax from people who have not automatically deducted it from their income. For the vast majority, this affects the self-employed, but there is a range of different income types that will require filing a self-assessment tax return.

Income tax is usually automatically deducted from wages, pensions, and savings, but people with income from other sources will need to submit a self-assessed tax return and pay any taxes they might. duty.

Income tax returns should generally incorporate all aspects of income and HMRC will use this to calculate the amount of income tax or potential capital gains tax that one owes.

HMRC announced yesterday that the department will waive late penalties for tax returns and self-assessment payments.

This is to help accommodate those who will not be able to submit their return or pay by the usual January 31st deadline.

Self-assessment tax returns submitted before February 28 and tax payments or payment deadline arrangements made before April 1 will not incur any penalties.

However, HMRC noted that 2.75 interest on overdue payments will still be payable from February 1.

In addition, paying income tax on normal wages or pension payments while receiving some other type of untaxed income does not mean that one can avoid a tax return or auto payment. -Evaluation.

Self-assessment tax returns may also be submitted in some cases to prove self-employment or receive benefits.

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Those who receive family allowances may also be required to submit a declaration.

This is only necessary if they or their partner earned more than £ 50,000 in the last financial year as they will have to pay the high income child allowance fee.

Anyone submitting a self-assessment tax return for the first time is advised to consider 20 days in order to register before they can submit the return.

Self-assessment tax returns can be completed online or in paper form, and support is available for those who need it.