What does the 5 April Deadline mean for you?

5 April 2022 will be the final day a claim can be made for a tax repayment relating to the 2018 tax year (6 April 2017 to 5 April 2018). This means that if you have overpaid tax for the 2018 tax year and have not made a claim by that time, you will lose out.

Why would you have overpaid tax?

You may have overpaid tax in the 2018 tax year for a variety of reasons. In order to have overpaid tax, you need to have paid tax in the first place (either as an employee via PAYE or a sub-contractor via the Construction Industry Scheme). Transactions which give tax relief can result in tax repayments. We have listed below some common ones.

• Expenses - If you have not accounted for qualifying expenses incurred to perform your trade or employment, these expenses may give rise to a repayment of tax.

• Charity donations - If you have made charity donations which qualify for tax relief, this can result in a tax repayment. We have written a guide on tax relief for charity donations.

• Pension contributions - Qualifying pension contributions can be great sources of tax relief.

• Other allowances - Allowances such as Marriage Allowance and Blind Persons Allowance can also generate tax repayments by giving different types of tax relief.
  
  
  
  

What happens if you miss the deadline? Can you still get a repayment?

Maybe, but it is unlikely.

In certain circumstances, HMRC might issue a repayment, even if you are out of time. This applies only in circumstances where HMRC or another government department has made a mistake. This rule is Extra Statutory Concession B41.

There is also an opportunity to make a claim for Special Relief. However, this claim is only able to reduce or eliminate a HMRC determination and will not usually result in a repayment of overpaid tax.

Will you be fined?

No.

There is not a specific fine for missing this deadline. However if you were issued a 2018 tax return to submit you may have already amounted £1,600 in fines, plus interest.

What else happens on this date?

Unrelated to tax, 5 April 2022 is also the last date that you can pay into your ISA for it to be counted within your 2021-22 ISA allowance. From 6 April 2022 your ISA allowance of £20,000 will restart.

What should you do to meet the deadline?

Get in touch with us. We will expedite your claim to make sure you meet the deadline and get your tax back.