Taxpayers in the United Kingdom face an impending deadline for filing their self-assessment returns, with potential penalties looming for those who miss it. The cut-off date is set for the end of the day on January 31, 2024. After this deadline, individuals who have not submitted their tax returns may incur an initial penalty of £100.
The HM Revenue and Customs (HMRC) has issued a reminder that a self-assessment tax return is required for individuals earning over £1,000 from side businesses, those who are self-employed, property landlords, or individuals dealing in cryptoassets. This filing pertains to the 2024-25 tax year.
Warnings from HMRC and Financial Advisors
In a message posted on X, HMRC emphasized the importance of timely submission. Myrtle Lloyd, HMRC’s chief customer officer, advised taxpayers not to procrastinate. “Don’t leave it until deadline day. Filing now will give you peace of mind that your tax return is completed, and if you have tax to pay, you have a week to arrange payment,” she stated.
Lloyd also noted that individuals concerned about settling their tax bills may qualify for a payment plan through HMRC’s online services. Taxpayers can search for “difficulties paying HMRC” on the official gov.uk website for more information.
While the deadline falls on a Saturday, HMRC’s telephone support will not be available after January 30. The agency will resume regular operations on February 2. However, for those needing assistance, webchat support will be accessible through HMRC’s online helpdesk on the deadline date.
Consequences of Late Submission and Payment
Financial advisor Alastair Douglas from Totally Money has issued a stark warning for those who delay filing. “Time is quickly running out for anybody who still needs to file their self-assessment return,” he said. “If you don’t get it in, or pay your bill before midnight on Saturday, the taxman will penalise you.”
For late submissions, an initial penalty of £100 applies, escalating by £10 for each day the return is overdue after three months. In terms of late payments, individuals will incur a charge of 5% on the unpaid tax after 30 days, and again at six and twelve months, in addition to interest on the amount owed.
Douglas encourages individuals who may struggle to pay their tax in full to contact HMRC promptly. Setting up a payment plan requires only a Unique Tax Reference number, bank details for a Direct Debit, and specifics about income and expenses. This process can be completed either online or through HMRC’s helpline, available on weekdays.
As the deadline approaches, taxpayers are urged to act swiftly to avoid punitive fines and ensure compliance with tax regulations.
