HMRC have warned that there will be major delays in the checking of tax returns for the 2020/21 tax year.
With so many changes for many self-employed individuals this year, including CJRS (furlough) and SEISS grants, HMRC are manually double checking any tax returns that have been in receipt of either CJRS (furlough) and/or SEISS grant payments.
The software that they had originally planned to use to do the checks has failed, leading them to be manually verifying individual returns. This means that you may have until the end of October for finalisation of your return. Ultimately, you should prepare for these delays as there will be a longer wait than usual for any refunds and providing final tax figures for mortgages.
With the whole system going into meltdown, many accountants across the UK have felt the need to contact their local MP’s in an effort to highlight the issue and safeguard against further delays and potential disruption.
We’ll aim to get you updated as the situation unfolds and to warn of any further disruption to your business.
Get your accounts in early
It’s always a good idea to get your tax returns in early, but this year in particular we are strongly recommending that you start the process if you haven’t already.
The deadline is the end of January, but with the delays in mind, you should be aiming to complete your tax return by the end of November at the latest to avoid any fines being put in place.
How can Turas Accountants help? If you’d like to know more about how these delays may impact you and your business, please get in touch with us.
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