100 days left until January 31 self-assessment deadline

Self-assessment taxpayers have 100 days left to complete their online returns before the January 31 2021 deadline.

People may want to start early, to give themselves time to set up a repayment plan or pay their tax bill.

HM Revenue and Customs (HMRC) said that once self-assessment customers have completed their 2019-20 tax return, and know how much tax is owed, they can set up their own payment plan to help spread the cost of their tax liabilities, up to the value of £30,000.

HMRC’s interim director general of customer services Karl Khan said: “We know many customers will have been adversely affected by the coronavirus pandemic, or will need help to spread the cost of their tax bill.”

The revenue body said people should complete a return if they have earned more than £2,500 from renting out property or from other untaxed income such as tips or commission, or if they have received, or their partner has received, child benefit and either of them had an annual income of more than £50,000.

They may also need to complete a return in other situations, for example they are a self-employed sole trader whose annual turnover is over £1,000 or if they are an employee claiming expenses over £2,500.

Around 11 million customers complete a return every year.

Paper returns must be in by October 31 2020.

HMRC also warned taxpayers to beware of copycat websites and phishing emails, which often appear as the self-assessment deadline looms.

It said they should always type in the full online address – www.gov.uk/hmrc – to get the correct link for filing in their self-assessment return online securely and free of charge.

They should also be on their guard if someone gets in touch claiming to be from HMRC, saying they can claim financial help, are due a tax refund or owe tax – as it could be a scam.