You are here: Home - Household Bills - News -

Millions of self-employed face double tax bill this January

Written by: Emma Lunn
Sole traders still due to pay their deferred 2019/2020 self-assessment payment in July face a double tax bill this month.

According to Intuit QuickBooks, a quarter (25%) of the UK’s self-employed – 3 million people – could be facing the extra payment.

Those who deferred the payment due in July 2020 will have to pay the bill, alongside January’s payment, on 31 January 2021.

According to Intuit, more than a quarter of sole traders (26%) say they will find it harder to pay their tax bill this year due to the financial impact of the pandemic. A fifth (21%) say they are less confident in completing their return accurately because of the inclusion of Covid-19 grants.

As a result, HMRC is being more lenient towards late submissions this year.

Whilst the tax office is still encouraging as many people to file on time as possible, if an applicant has been adversely impacted by Covid-19 it will accept that as a ‘reasonable excuse’ for penalties to be waived, though penalties for paying tax late will broadly still apply.

In normal times, as many as two in five (42%) sole traders say they have been fined for making mistakes or missing deadlines – paying an average total of £389 in penalties.

Pauline Green, head of product compliance at Intuit QuickBooks, said: “Sole traders and self-employed individuals have never faced such challenging circumstances and with other areas requiring focus, the burden of admin can be an unnecessary drain on time and resources.

“Today’s findings reveal that less than a third of sole traders are confident they know where they’ve kept their records. Using the right digital tools not only keeps track of financial information, but also gives business owners the confidence they’re filing their tax accurately. Speeding up this process means the self-employed have time to focus on what really matters: running and growing their business.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week