Hanging on to reality...and your tax return!
01 July 20202020 has been surreal thus far, and with no real answers or vaccine in sight for the time being, the spring is now merging into the summer. It's good to see that some lockdown measures are being eased, although great concern continues as the virus spread rate hovers around R1, with any real increase in infections likely to see further lockdown measures being imposed.
Return to work, phased or full time, is now being suggested, with shops reopening with the correct distancing measures in place. Other points in many people's annual calendar also appear on the horizon, such as completing their annual tax return. With postal reminders now through the door and possibly added to the 'to-do' file, consolidated tax certificates, P11D documents and P60s should now be accumulating to be able to complete any return required, usually for higher rate tax payers and the self-employed.
Don't forget that banks and building societies will also be sending interest certificates through, sometimes tucked behind a normal monthly statement, so they may not be obvious. If you have been making pension contributions directly to a pension provider, you may need to add these to your return to reclaim higher rate tax relief if applicable. Tax relief on personal pension contributions is granted as standard at a level of 20%, and if you are a higher or additional rate tax payer, you may be able to reclaim higher rate tax relief through your tax return at a level of a further 20/25%, dependent on your individual circumstances. There are times when your tax office will grant you higher rate tax relief earlier in the tax year without waiting to complete an annual tax return.
The economic measures introduced by the Chancellor due to the Covid-19 pandemic include some deferral options for tax payment (Self-Assessment second payment on account) requirements by the end of July 2020 and more on this can be found here: https://www.gov.uk/guidance/defer-your-self-assessment-payment-on-account-due-to-coronavirus-covid-19
The need to complete a tax return for the last tax year 2019/2020 won't change, and it is important to read this link carefully, and take appropriate advice if required, if it affects you.
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However, the summer of 2020 evolves for you, and we of course hope this is safe and enjoyable, don't forget to prepare your tax return and submit it accordingly. The team would be happy to recommend a local accountant if this would be helpful.
Enjoy the summer...and the tax return!
No individual advice is provided during the course of this blog.
Keith Churchouse FPFS
Director
CFP Chartered FCSI
Chartered Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899
