For ease, we have split this article into various headings. Here is a summary of the contents, linking to the relevant sections:
Tax
1. Do you still need to file your 2010/11 self-assessment tax return? For online filing, the deadline is 31 January 2012
2. Self-assessment tax to pay? The 31 January 2012 deadline, and what to do if you cannot meet it
3. Penalties for late self-assessment tax return filing
4. Getting help with your tax return
5. What to do if you have a technical problem filing your self-assessment online
6. Reclaiming tax for earlier years
7. Received a PAYE tax calculation (‘P800’)? Need help?
National insurance contributions
8. Class 2 NIC – pay by 31 January 2012
Tax credits
9. Confirm previously estimated 2010/11 income by 31 January 2012
10. Get your claim reinstated by 31 January 2012 where you had ‘good cause’ for missing the first renewal deadline of 31 July 2011
11. New number for Tax Credit Helpline
Benefits
12. Cold weather payments
Tax
If you file your tax return online, you must do so by 31 January. And if you were sent a paper return, but have not yet filed it, you can instead file online provided you do so by 31 January. But if you have already filed a paper return late, having missed the paper return deadline of 31 October 2011, you cannot file again online to escape a penalty (see more on penalties below).
If you have not filed online before, you have to register first and wait for HMRC to send you a user ID and activation PIN in the post. You will normally have to wait up to seven days for HMRC to post this information to you, so it is prudent to register well before the deadline.
You should also note that the HMRC software has limitations. It does not provide all of the tax return supplementary pages, nor can you file partnership or trust and estate returns using the HMRC system. Make sure you check well in advance whether you can use the HMRC system or if you need to buy third party software.
- 2010/11
31 January 2012 is the deadline for payment of your tax liability, or remaining tax liability, for the year 2010/11. Note that the term ‘tax liability’ includes more than just income tax – it can also include capital gains tax, student loan repayments and Class 4 National Insurance contributions, if any are due.
Payment can be made via HMRC’s website. But, watch out! If you pay by credit card, you will be charged a non-refundable transaction fee of 1.4%.
- 2011/12
31 January 2012 is also the deadline for the first payment on account for 2011/12, if one is due. If you are not sure whether you need to make payments on account, how much they will be, and how to reduce them, read our guidance.
- A warning
We have come across a number of cases where an individual looks at his or her SA tax calculation but only gets as far as the line which says ‘Please note that the total amount due by 31 January 2012 is £xxxx.xx’. But you must also read the next paragraph which says that these figures do not take into account any payments on account made against this liability.
The same situation occurs if you file online – on the two-page print out, at the end of the first page is a note of total tax due but the narrative about payments on account is on the next page.
Bear in mind that statements are not issued at the same time as you complete your return. Nowhere on the return does it confirm exactly what you will actually have to pay on 31 January as opposed to what is due. You therefore have to take the total tax owed and deduct from it payments you have already made on account to arrive at the amount you need to pay.
- What to do if you cannot pay
If you think you will not be able to pay, HMRC should respond sympathetically if you apply for time to pay before 31 January. The Department is more lenient to those who ask for more time before a tax liability falls due, than to those who miss the payment date then ask for time to pay as an afterthought. So if you are worried you will not be able to pay, contact HMRC as soon as possible. Both individuals and those in business should use the Business Payment Support Line.
Our November article gives more information for those who file on paper but have already missed the 31 October deadline and provides guidance for those who missed it but might have a reasonable excuse for it being late. It also sets out the new penalty regime for late returns.
Importantly, penalty rule changes this year mean that it is no longer possible to escape a fixed £100 fine if you file late, even if pay all your tax on time or have nothing to pay.
If you do not think that you can do the sums for yourself, then you need to hire a tax adviser or, if you have a low income and cannot afford to pay for an adviser, you can try the charities TaxAid or, if you are a pensioner, TaxHelp for Older People. But bear in mind that everyone will be extremely busy at this time of year.
5. What to do if you have a technical problem filing your self assessment online
If you try to file online, but cannot because of a technical problem such as a fault in HMRC’s software, you can instead send in a paper return and claim reasonable excuse for filing it after the paper deadline of 31 October. HMRC will accept a reasonable excuse claim in such circumstances, which means that there will be no late filing penalty.
The rules about time limits for repayment claims differ depending whether you are or are not in self-assessment.
If you are a self-assessment taxpayer, you can only claim repayment of overpaid tax for four years following the end of the tax year. This means that you cannot go back any earlier than the 2007/08 tax year, and the deadline for claims for that year expires on 5 April 2012. The claim for the 2008/09 tax year expires on 5 April 2013.
For taxpayers not in self-assessment, the rules have been amended. Therefore it is very important that you note the changed dates particularly if you intend to make any claims for the tax years 2005/06 to 2007/08.
In respect of any claims for the 2005/06 tax year, you have five years and ten months to claim following the tax year to which the repayment relates. 31 January 2012 is therefore the last day for making any such claims for repayment of tax for 2005/06.
After 31 January, 2005/06 falls away and the first year for which a claim can be made becomes 2006/07 – you have until 31 March 2012 to make a claim for that year.
From 6 April 2012, the four year time limit will apply to non-self assessment taxpayers as it does now to those in self assessment so for 2007/08 you have until 5 April 2012 to make a claim.
As for self-assessment claimants, the claim for the 2008/09 tax year expires on 5 April 2013.
Exceptionally, a concession allows repayments to be made for earlier years in cases of official error by HMRC or another government department.
Read our guide to checking your calculation and what action you might be able to take.
If you are self-employed, your class 2 NIC bill issued in October 2011 will be due for payment by 31 January 2012. The HMRC website gives details of the payment dates.
Tax credits
The deadline for renewing a tax credit claim is 31 July following the end of the tax year.
If you were not able to report your actual 2010/11 income by 31 July 2011 – for example, if you were self-employed and your accounts were not yet ready – but you nonetheless returned an estimate of your income, then you have until 31 January 2012 to confirm that estimate, or to report the actual income figures. If you do neither, HMRC will use the estimated income as your actual income figure for 2010/11. If this is wrong, your claim may be finalised incorrectly which could lead to overpayments and penalties.
If you did not renew your tax credits claim by 31 July 2011, but had ‘good cause’ for not doing so, you have until 31 January 2012 to return your renewal papers (or renew by telephone) and have your claim reinstated from 6 April 2011.
‘Good cause’, according to HMRC, includes a serious illness such as coma, heart attack, stroke or serious mental or life-threatening illness; serious illness of a close relative for whom the claimant is caring; bereavement of a close relative or partner; or some other reason.
The new Tax Credit Helpline number for questions about your tax credits is 0345 300 3900. The line should be cheaper for callers, but especially those using mobile phones.
If you have hearing or speech impairments, the new textphone number is 0345 300 3909. You will still also be able to use the old numbers (with the 0845 code), for about the next 18 months.
Benefits
Certain benefits claimants might have received extra cold weather payments last winter. They are tax-free, so make sure you don’t include them on your tax return. If you received winter fuel payments - these are also tax free.
(06-01-12)
Contact: Kelly Sizer (please use form at http://www.litrg.org.uk/ContactUs)
