You may have heard that the government extended the Self Assessment tax deadline earlier this year.
Isn’t that fantastic? After all, no one enjoys paying taxes, so the fact that HMRC extended the deadline for filing and paying tax returns was a welcome relief! However, this change has many people wondering if the tax deadline will be extended again in 2023.
You must be dying to know the answer if you are due to file a Self Assessment tax return.
When is the usual tax deadline?
If you’re new to the tax world, here’s a quick rundown of everything you need to know about Self Assessment tax deadlines.
There are two key deadlines for tax returns that you should be aware of:
- The deadline for registering for Self Assessment, which is always the 5th of October. If you’ve never filed a tax return before, this is how you inform HMRC that you have untaxed income.
- The Self Assessment deadline is January 31st of the year following the tax year for which you are paying. So, if you were to pay your 2022/2023 tax return, you should do so by January 31st, 2024.
It was the latter that was extended in 2022, and it is unclear whether HMRC will extend it again next year, but it’s clear that the taxes can be calculated by the best crypto tax software.
Why was the tax deadline in 2022 extended?
HMRC decided earlier this year to waive late filing and late payment penalties for anyone who needed to complete their 2020/2021 tax returns.
Instead of filing and paying their tax return by the usual deadline of January 31st, Self Assessment taxpayers did not:
If they filed online before February 28th, 2022, they will incur a late filing penalty.
If they paid their tax in full or set up a Time to Pay arrangement before April 1st, they will not be penalized for late payment.
Why was the Self Assessment deadline pushed back?
It was mostly due to the Covid-19 pandemic. That, as well as the impact it had on Self Assessment taxpayers’ ability to meet their tax obligations on time. As a result, HMRC extended the deadline in order to relieve some of the pressure by allowing them more time to file and pay their tax. They won’t be fined.
Will the tax deadline be extended once more?
Nope. Atleast, we don’t believe so.
Unless something changes, it appears that HMRC will not extend the deadline again. HMRC even states on their website that for the 2021/22 fiscal year, they must receive tax returns and any money owed by midnight on January 31, 2023.
So, if you earned untaxed income between April 6, 2021 and April 6, 2022, you must file and pay your tax return before the usual deadline!
In 2023, who will be required to file a tax return?
Do you know if you need to file and pay a Self Assessment crypto tax return next year? This is determined by whether you had any untaxed income between April 6, 2021 and April 6, 2022.
You could have earned untaxed income for a variety of reasons, including:
- You work for yourself.
- You make more than £100,000 per year.
- You have a side job in addition to your full-time job You are a landlord
- You have capital gains as a result of your investments.
- You profit from the sale of assets (e.g. a house)
- You are claiming pension tax exemption.
Binocs is an excellent platform for managing cryptocurrency taxes and coin tracking. It manages daily market value fluctuations and ensures the condition of our coins and tokens.
