The 2020/21 tax year ended on 5th April 2021 and our tax team’s focus is on completing our client’s tax returns for that year.
We do realise that there may be people who have still to complete their 2019/20 tax returns and we would urge them to contact our tax helpline for advice as soon as possible –penalties and interest will automatically be applied to late 2019/20 tax returns but these can be cancelled if the delay is due to COVID 19 (or any other reasonable excuse) –the problem will only get worse if you ignore it so act now!
Back to 2020-21 –we have included in this article our tax team’s calendar which is handy to remind you of important deadlines throughout the year.
The 2020-21 tax year doesn’t include any major changes when compared to 2019-20 –although there are increases in the following key areas in 2020-21
Personal tax free allowance: £12,570 (2019-20 £12,500)
Class 2 National Insurance:
Rate per week £3.05 (2020 £3.00)
Payable when self- employed profit exceeds £6,435 (2019/20 £6,365)
Class 4 National Insurance:
Rate 9% (2019/20 9%)
Payable on profits over £9.501 (2019-20 £8,632)
The rate of Class 4 National Insurance drops to 2% on profits over £50,000
Whilst many of you will be preparing tax returns because you are self-employed Foster carers there may be other members of your family who need to do tax returns.
A tax return is required if you:
- Are self-employed and earn over £1,000 (that is takings before deduction of expenses)
- Are In a partnership or are a company director
- Are a higher rate tax payer with income over £100,000
- Have a capital gain in excess of the exempt amount (£12,300)
- Are In receipt of Foreign Income
- Have rental income
- Have a tax liability and no PAYE source of income
- Earned over £2,500 of untaxed income
Whatever the reason for preparing a tax return, our tax team have the expertise and experience to help you –just call the Helpline on 0121 758 5013 or why not let the Team prepare and file your tax return for you, freeing up your time and reducing your stress levels!
We offer a flat rate tax return preparation service (from £145 Inc. VAT for a standard return) and the Team currently prepare over 3,500 self-assessment tax returns.
After over a decade working with our happy and loyal clients we know our team have a proven track record for excellent service – but don’t take our word for it, client feedback says it all:
“Far simpler than I expected-all the hard work done for me”
“Thank goodness I found you and ended my worries about getting my tax return wrong”
“Friendly and professional service can’t fault it, always on hand to help and answer any queries”
Although the filing deadline for 2020/21 tax returns is 31 January 2022 which seems a million miles away it is always useful to get your return filed early –you don’t have to pay the tax you owe until 31 January 2022 but you will know exactly where you are and you can plan your cash flow.