IT’S THAT TAXING TIME OF YEAR AGAIN – Part One
Whilst you are all turning your thoughts towards Christmas, here in the tax department we are focussed on the upcoming 31st January tax deadline, and frankly, getting more than a little into ‘full scrooge mode!’
Here’s a quick refresher of the basics around self-assessment:
- The tax year we are all focussed on covers the year 6th April 2020 to 6th April 2021 (20/21 tax year)
- Your self-assessment tax return for 20/21 tax year must be filed by 31 January 2022 and any tax due should be paid by 31 January 2022. There are late filing penalties both for filing your return late and/or paying a tax bill late
- If you are a fostering household someone in the household is self-employed and should be preparing a self-assessment tax return, if you are a couple and both foster, it may save you tax to both do a tax return
- Foster carers can use the HMRC guideline HS236 to calculate their profit from fostering. Foster carers are given round sum allowances against income when using HS236
Remember, just because foster carers are self-employed and required to prepare tax returns, it does not mean that they should have large tax bills, many carers have no tax to pay at all.
If you are facing a large tax bill it may be that you have not taken advantage of the additional tax deductions available to “specialist foster carers” that is foster carers who are paid more than the standard rate per week due either to their skills levels or due to the special needs of their foster child.
Call us at Intellect and we can talk you through claiming your enhanced expenses to reduce your tax liability. 0121 794 2289