Liz Wild was invited to Channel 4’s Leeds headquarters today (Monday 25th January) to share her tax tips and offer advice ahead of the January tax return deadline.
Appearing on Steph’s Packed Lunch, Liz chatted to presenter Steph McGovern about the who, what, why, where and when of completing a tax return.
Liz’s advice included treating the 31st January date as a deadline, not a target – it’s always better to complete your return early so that you know exactly how much you’ll need to pay and can plan for it. You might even be due a refund, which can be claimed earlier if you’ve completed the paperwork sooner.
She also directed viewers to a handy tool on the HMRC website for working out whether or not you need to complete a tax return.
Clint, in the audience, asked about the rules for anyone who has started an EBay or Amazon shops to earn a bit of extra income during lockdown. Liz reminded viewers that 31st January 2021 is the deadline for submitting your tax return for money that you made between the 5th April 2019 and the 5th April 2020. If you made this extra money after the 5th April 2020, you won’t need to declare it until the next tax year. However, just because you have a whole year before the deadline, doesn’t mean you should ignore it until then. Establish good practice in your new business right from the beginning and start setting money aside for tax so you can pay when the time comes.
She also had advice for anyone who’s struggling to pay their tax bill this year due to the impact of coronavirus. Liz said people should talk to their accountant or HMRC as soon as possible so that a plan can be put in place to pay what’s owed.