Will the tax deadline be extended again in 2023?

You might have heard that earlier this year, the tax deadline for Self Assessment was extended by the government. 

Sounds great, right? After all, nobody actually likes paying taxes, so the fact that HMRC gave everyone more time to file and pay their tax returns was an added bonus! But that change now has many people wondering… will the tax deadline be extended again in 2023?

If you’re due to file a Self Assessment tax return, you must be DYING to know the answer. So let’s delve into what we know so far.

Hang on, when is the tax deadline usually?

If you’re new to the world of taxes, let’s give you a quick overview of everything you need to know about Self Assessment tax deadlines. 

There are two key deadlines that you need to know about for tax returns, which are:

1. The deadline to register for Self Assessment – which is 5th of October in any given year. If you’ve never done a tax return before, this is essentially how you tell HMRC that you’re earning untaxed income.

2. The Self Assessment deadline – which is 31st of January the year after the tax year you’re paying for. So, if you were paying your 2022/2023 tax return, this should be paid before the 31st of January 2024.

It was the latter that was extended in 2022, and the one that’s got people wondering whether HMRC will extend it again next year.

Why was the tax deadline extended in 2022?

Earlier this year, HMRC decided to waive late filing and late payment penalties for everyone who needed to complete their 2020/2021 tax returns.

Instead of filing and paying their tax return before the usual 31st January deadline, this meant that Self Assessment taxpayers didn’t:

• Receive a late filing penalty if they filed online before 28th February 2022

• Receive a late payment penalty if they paid their tax in full, or set up a Time to Pay arrangement before 1st April

So why exactly was the Self Assessment deadline extended? 

Well, it was mostly thanks to the Covid-19 pandemic. That and the effect it had on Self Assessment taxpayers to meet their tax obligations in time. As a result, HMRC extended the deadline to relieve some of that pressure by giving them more time to file and pay their tax. Without them having to worry about being fined!

So will the tax deadline be extended again?

Nope.

Well, at least we don’t think so.

Unless anything changes, it’s looking highly unlikely that HMRC will extend the deadline again. In fact, on their website, HMRC even states that for the 2021/22 tax year, they must receive tax returns and any money owed by midnight on 31st January 2023.

So if you have untaxed income that you made between 6th April 2021 and 6th April 2022, you’ll have to file and pay your tax return before the usual deadline!

Who will have to file a tax return in 2023?

Wondering whether you’ll have to file and pay a Self Assessment tax return next year? This depends on whether you have any untaxed income you made between 6th April 2021 and 6th April 2022.

There are various reasons that you might have earned untaxed income, such as:

• You’re self-employed
• You earn more than £100,000
• You have a side gig alongside your full-time job
• You’re a landlord 
• You have capital gains from investments
• You make a profit from selling assets (e.g. a house)
• You’re claiming pension tax relief

That’s me! What do I need to do?

Don’t panic!

If you’ve never filed a tax return before, then you first need to register for Self Assessment on HMRC’s website before 5th October 2022. They’ll give you a Unique Taxpayer Reference (UTR) number, which you’ll use to pay your tax bill.

Once you’ve registered you’ll then need to fill out your Self Assessment form online and pay the tax you owe before 31st January 2023. 

There are a few options for how you actually do this:

1. Do it yourself on HMRC’s website: for free, although it’s not super easy to understand how to use it

2. Find an accountant and pay them to help you: this can be pretty pricey!

3. Give TaxScouts a go: we’re £149, all in and it doesn’t matter how many sources of income you have, or how complicated your tax situation is. Plus, we’ll give you your own personal accountant too!