An urgent call for action has been launched for the 3.4 million individuals who have just over a week left to submit their tax returns to avoid potential fines. HM Revenue and Customs (HMRC) cautions that not meeting the January 31 deadline will lead to an automatic £100 penalty.
As it stands, some 8.6 million people have already filed their 2023/24 tax returns. Myrtle Lloyd, director general for customer services at HMRC, implores: “Time is running out for the millions still to file their self-assessment tax return by January 31. Help and support is available for those who have not yet started their return. Visit gov.uk and search ‘self-assessment’ to find out more.”
Additionally, HMRC advises taxpayers to ensure their bank details are included in their tax return to allow for speedy and secure reimbursements. Cases of failure to pay tax or settle payment agreements by the deadline will be considered individually, with HMRC suggesting that a reasonable excuse might prevent a penalty.
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Andrew Bartlett, chief executive of Advice Direct Scotland, has issued a stark warning for those dragging their feet on tax matters, reports the Daily Record. He said: “Time is running out. There’s not much time left to get your self-assessment return in order and pay any tax you owe to HMRC, so if you have been putting it off, you should act now.
“If you don’t meet the deadline at the end of this month, you will start to accrue fines on top of your 2023/24 tax bill, which will get steeper the longer you delay. If this is the first time you’ve gone through the process, don’t worry – our advisers can assist people struggling to fill in their Self Assessment forms or who have any other queries about their tax obligations, completely free of charge.”
HMRC has a wide range of resources online including a series of video tutorials on YouTube, help and support on GOV.UK, to support customers in completing their tax return. For people who can’t meet the tax return deadline, HMRC will treat those with reasonable excuses fairly if they tell HMRC before January 31.
The penalties for late tax returns are:
- an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
- after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
- after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
- after 12 months, another 5% or £300 charge, whichever is greater
Who needs to file a Self Assessment?
Taxpayers may need to complete a tax return, even if they pay taxes through PAYE, for example, if they:
- are self-employed and have earned gross income over £1,000
- are self-employed and earned up to £1,000 and wish to pay Class 2 NICs voluntarily to protect their entitlement to State Pension and certain benefits
- are a partner in a business partnership
- had a total taxable income of more than £150,000
- have received any untaxed income including pension income over £2,500
- received income over £1,000 from trading or providing services online
- have to pay the High Income Child Benefit charge
- received interest from banks and building societies or investments (more than £10,000)
- received rental or letting income from UK land and property
If an individual frequently sells items or offers services via an online platform, they may be required to pay tax on their earnings. More information about online selling and tax obligations can be found on the GOV.UK website by searching ‘online platform income’ or through the HMRC app. This guidance will assist individuals in determining whether their activity is considered a trade and if they need to fill out a Self Assessment tax return.