Despite the temptation to enjoy warm summer evenings, don’t neglect your tax and tax credits paperwork. LITRG reminds us of deadlines in July which cannot be ignored.
Introduction
Here LITRG provides the latest in their series of monthly reminder articles to help you check your tax and tax credits, covering the following topics:
- Tax credits – renew by 31 July or consider claiming them
- Do you need to pay tax by 31 July?
- Having difficulty paying your tax?
- Get ahead with your 2010/11 tax return
- Do you need a tax return but haven’t received one?
- Still need to send in your 2009/10 tax return? Do it by 31 July
- Do you want to try submitting your tax return online for the first time?
- Benefits and expenses - forms P11D and P9D
- Employers – quarterly PAYE
- School’s out – check your tax credits
- Useful links
1. Tax credits – renew by 31 July or consider claiming them
It is important to consider tax credits if you have not already thought about them since the new tax year began on 6 April.
Existing claimants need to renew their claim by 31 July. As well as acting as a new claim for 2011/12, the renewals process also finalises your award for last year (to 5 April 2011).
If you don’t currently claim tax credits, you should still consider your position. For example, you might now be entitled to them, particularly if your personal or financial circumstances have changed. Or even if they haven’t changed yet, you might consider claiming tax credits now in case your income falls during the coming year.
More information can be found in LITRG’s article – ‘Tax credits and the new tax year – changes and renewals’.
2. Do you need to pay tax by 31 July?
If you do Self Assessment tax returns each year, you might have to make a tax ‘payment on account’ for the 2010/11 year on 31 July. It depends on how much you owed for 2009/10 and whether or not most of your tax is collected at source, for instance through PAYE.
You might be able to claim to reduce your payments if you think you will owe less for 2010/11 than for 2009/10 (for example, if your income has gone down).
3. Having difficulty paying your tax?
Contact HMRC as early as possible to discuss your situation if you are having trouble paying your tax. They might agree to let you have more time to pay, although you will still be charged interest on any amount not paid by the due date. The TaxAid website gives more information on negotiating time to pay (see useful links below).
4. Get ahead with your 2010/11 tax return
It might feel like you’ve only just dealt with your 2009/10 tax return, but it’s worth sorting out 2010/11 sooner rather than later. Paper returns must be submitted by 31 October 2011 and online returns by 31 January 2012.
The sooner you send in your tax return, the sooner you will know how much you owe and can budget for your tax payments; or, if you are due a repayment, you will get your money back sooner.
Penalties for late tax returns have changed from 6 April 2011. The cost of being late with your return could be higher than in the past, particularly if you file on paper. LITRG aims to post more information on the changes in due course, but the basic advice still stands – get your return in on time.
5. Do you need a tax return but haven’t received one?
If you haven’t received a Self Assessment tax return or notice to complete one, but you think you might have tax to pay for 2010/11, you must tell HMRC. The deadline for telling them is 5 October 2011. Telephone the Self Assessment helpline on 0845 900 0444. Keep a careful note of any calls made to HMRC.
Failure to notify HMRC of a new liability to tax can trigger a penalty.
6. Still need to send in your 2009/10 tax return? Do it by 31 July
The normal deadline for tax returns for the year to 5 April 2010 was 31 January 2011. If you haven’t yet submitted yours, you will probably have already received a £100 penalty notice.
Don’t delay any longer - if you still haven’t submitted the return by 31 July, you will receive another £100 penalty notice.
7. Do you want to try submitting your tax return online for the first time?
If you haven’t filed online before but want to do so this year, have a look at HMRC’s guide to filing online. You will first need to register for the service and wait to be sent a user ID and password – as this can take about a week, don’t leave it until near the 31 January deadline.
8. Benefits and expenses - forms P11Ds and P9Ds
Employers
If you provide staff with certain benefits in kind or reimburse expenses, you should have completed 2010/11 forms P11D or P9D by 6 July, submitted them to HMRC and given copies to your employees.
HMRC provide a monthly reminder diary for employers. As well as filing benefits forms by 6 July, you also need to pay any additional Class 1A NICs by the deadline (19 July for cheque payments, 22 July for approved electronic payments).
Employees
If you are an employee receiving certain expenses or benefits, make sure you get a P11D (or P9D if you earn less than £8,500 a year) from your employer. If you changed jobs in the last tax year, you might need to contact your previous employer(s) for this information.
9. Employers – quarterly PAYE
If you are an employer whose total tax and national insurance payment will be on average less than £1,500 a month, you can choose to pay quarterly, rather than monthly. You must make sure your quarterly PAYE cheque arrives with HMRC by 19 July or, if paying electronically, cleared payment must have reached HMRC’s account by 22 July.
10. School’s out – check your tax credits
With the school holidays approaching, childcare costs are a concern for many parents. LITRG has posted a separate article on the tax credits issues when considering:
- childcare costs in the school holidays; and
- what happens when your children leave school.
11. Useful links
LITRG guidance on self assessment payments on account
HMRC website guidance on problems paying your tax
TaxAid’s guidance on negotiating time to pay
HMRC information on new penalties for late tax returns
HMRC information on penalties for failing to notify of a tax liability
LITRG website guidance on employee expenses and benefits
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