The deadline to file your 2018-19 tax returns is fast approaching, the 31 January 2020. Most of our clients will have the reassurance that we have filed their returns online, but for those who still need to file their 2019 return, it’s time to get into action. If you file after 31 January 2020 late filing penalties will be applied.
In an uncharacteristic display of humour, HMRC’s press release published 27 December, was titled: “We've been Santa lot of Elf Assessments”.
Apparently, on Christmas Day and Boxing Day over 12,000 tax returns were filed online. To put this into context, HMRC are expecting over 11million returns to be filed for 2018-19.
Don’t forget to pay your self-assessment tax
The 31 January 2020 is also the time when any underpayment of tax for 2018-19 – and any first payment on account for 2019-20 – are payable.
Clients reading this post, and who may be unsure how much tax they need to pay, should call so we can confirm any amounts that may be due.
End of the 2019-20 tax year
Following fast on the heels of the tax return deadlines for 2018-19 is the end of the 2019-20 tax year.
We recommend that all business clients and high-income earners complete a review of their tax planning options before 6 April 2020. Once that particular Rubicon is passed 99% of tax planning options for the current tax year become ineffective.
The outlook for 2020-21
It is likely that the first Budget of the new government will be presented February 2020, this will no doubt set the tax scene for 2020-21.
Hopefully, the tax goal-posts will not be moved too far from their present position. We will post detailed of any changes as they are announced. During the election campaign the Conservatives did promise that they would not increase most taxes. However, it was suggested that the further planned reduction in corporation tax (from 19% to 17%) will not go ahead. We assume that the current 19% rate will therefore continue.
Happy New Year
Now that political uncertainties have been resolved, let’s hope that business owners across the UK can look forward to the resolution of the numerous challenges that our exit from the EU will likely create. The conclusion of the withdrawal process on 31 January 2020 is just the start of the process. UK businesses will be keen to see the details of the negotiated trade agreement with the EU that is timed to conclude 31 December 2020.
In the meantime, happy new year. And be sure to keep in touch.