January is flying by and the end of the first month of 2021 is almost upon us. The 31st of January is an important date to remember because this is the deadline by which you need to submit and pay your 19/20 self-assessment tax form.
This does not constitute advice and advice should be sought in all instances before acting on it. The Financial Conduct Authority does not regulate tax advice.
Remember, if you miss the 31st Jan deadline, you’ll be charged a penalty even if you don’t have any tax to pay or if you have already paid all of the tax you owe. There’s still time left before the deadline, but you must act quickly.
Payment on account
If you’re a self-employed medical or dental professional, this is also the time to make your first payment on account and pay off any balance from the previous tax year.
Unless your last bill was under £1,000, you’ll need to make two payments on account each year – half your liability for the prior year for each payment.
The first payment on account is due by midnight, 31 January and the second is due 31 July, but if you don’t fully clear your tax bill with these payments, for whatever reason, an additional balancing payment is required to be made this week as well.
Deadline extensions
Last year, due to the coronavirus outbreak, the government granted a special extension to the filing deadline for 2018/19 tax returns, which were pushed back to 23 April 2020. This one-off extension was only introduced so people could claim a grant under the Self-employment Income Support Scheme (SEISS) and pertains to 2018/19 tax returns only.
The second payment on account for the 2019/20 tax year that was due by 31 July 2020, was deferred to 31 January 2021. So, it is certainly possible you will need to pay your second payment on account and your balancing payment for 2019/20 by 31 January on top of your first payment on account for the 2020/21 tax year.
How we can help
To ensure you’re always prepared for tax filing season, enlist your accountant to help with your assessment. As your financial adviser, we specialise in helping you manage your tax planning as part of the financial services and solutions we provide to doctors and dentists, so get in touch today.
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