As the January 31 deadline to submit self-assessment tax returns looms, a finance guru is sending out a stark reminder to those who’ve yet to settle their accounts: crunch time is now. Alastair Douglas, CEO of TotallyMoney, is emphasising the urgency of beating the clock to avoid HMRC’s penalties.
He warns: “With Friday’s deadline fast approaching, it’s important to get your tax return filed as soon as possible – and even if there’s nothing to pay. That’s because the taxman will be waiting to dish out £100 fines as soon as the clock strikes midnight. After that, you’ll have three months of breathing space before HMRC issues daily penalties of £10, up to a maximum of £900, with fines getting more severe after that.”
He also offers a ray of hope for those finding it tough to make the full payment, saying: “If you’re struggling to make the full payment, you might be eligible for a Budget Payment Plan which lets you set up weekly or monthly Direct Debits. To do this, you’ll just need to sign in to your account and follow the prompts. You’ll just need to have your unique tax reference number ready, along with your bank account information and details of any previous payments you’ve missed.
“If you’re having difficulty with setting up an online plan, then you’ll need to phone HMRC on 0300 200 3820. Just remember that wait times are likely to be longer the closer we get to the deadline and at lunchtime and evenings. They’ll ask you a series of questions, so make sure you have the information ready. These will include how much you can afford to repay each month, if there are other taxes you need to pay, your earnings and expenditure and details of your savings and investments.
“It’s also worth remembering that HMRC will charge interest at 7.25% on late payments, meaning the money owed can snowball, especially if you start incurring additional fines.”