CHARTERED ACCOUNTANTS STRESS THE IMPORTANCE OF RECORD KEEPING
With more than two million people having missed the normal self-assessment tax return deadline, Chartered accountants Wylie & Bisset has stressed the importance of urgent tax return filing and good record-keeping going forward as tax filing accounts is set to become more burdensome in forthcoming years.
The firm’s tax partner Catherine McManus (pictured above) said it was important that the extended deadline for self-assessment tax returns is not viewed in the marketplace as a permanent change.
She cautioned: “The deadline extension was introduced last year because of the impact of Covid and has been extended again this year, but that extension should not be viewed as a permanent feature.
No one should become complacent about meeting the 31st of January deadline because as Making Tax Digital (MTD) comes into force for income tax purposes in April 2024, the burden on filing will only become greater, not only at the year-end but throughout the year.”
Ms McManus added that, alongside MTD, the Revenue is shifting to a basis period change, scheduled for 2024/25, where traders will be required to report on a tax year basis, which taxpayers will need to address.
She added: “My advice to taxpayers would be, don’t rest on your laurels, get your 2021 tax return in as soon as possible, aim to get your 2022 return in promptly and, as we go into tax year 2022/23, liaise with your advisers to prepare for the impacts of basis period reforms and MTD,” she said.
We are encouraging our clients still to complete their 2021 tax return to get it submitted by the end of February. For those who have not liaised with anyone on their tax affairs, we would recommend contacting an advisor as soon as practicably possible. It would be unwise to be regarded as an offender by HMRC as that will serve to increase the chance of a tax investigation.”
