The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
HMRC has announced the following coronavirus (COVID-19)-related measures in relation to self assessment:
late filing penalties are not charged for any 2019/20 returns filed before 1 March 2021
a temporary facility for agents to appeal late filing penalties in bulk
late payment penalties are not charged for any tax due in relation to the 2019/20 tax year that is either paid before 2 April 2021 or where a payment plan is set up before 2 April 2021
the second payment on account for the 2019/20 tax year was deferred for all taxpayers
taxpayers struggling to make the self assessment payment due by 31 January 2021 can apply to HMRC for time to pay
daily late filing penalties are not charged in relation to late 2018/19 tax returns
These measures are discussed further below.
On 25 January 2021, HMRC confirmed that it will waive late filing penalties for all 2019/20 returns filed before 1 March 2021.
This means that as long as the 2019/20 return is filed by 28 February 2021, no £100 late filing penalty will be issued.
The penalty waiver applies to all self assessment tax returns submitted online and those self assessment returns that must be filed on paper as there is no facility for electronic submission (ie non-resident company income tax returns and trustees of registered pension schemes returns).
However, it is important for advisers to be aware that it is not possible to agree a time to pay arrangement for the 31 January 2021 liability (see below) until the 2019/20 tax return has been filed.
In any case, whether or not the taxpayer needs to set up a time to pay arrangement, late payment of tax attracts interest. Therefore, if the taxpayer was in a position to make the payment in full by 31 January, it would have been necessary for them to pay an estimated amount if the return was yet to be
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Liability of the personal representativesAfter a person’s death, the property of the deceased is vested in the personal representatives (PRs) to enable them to manage and distribute the estate in accordance with the Will or the terms of intestacy. See the Personal representatives guidance note.The
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s
Companies sometimes provide directors, employees or shareholders with low interest (or interest-free) loans either as part of the reward package or on special occasions to help the individual meet significant expenditure. The employment income implications of these loans are discussed in detail in
Current year relief and carry back lossesCurrent year relief for trading lossesTrading losses can be offset against total profits of the same period. Total profits covers, for example, chargeable gains or non-exempt dividends.The maximum claim for relief is the lower of the available loss or the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.