Self-assessment: The countdown is on
With less than a month to go to the self-assessment deadline HM Revenue and Customs (HMRC) has revealed almost six million people have yet to file their return for the 2022-23 tax year.
The deadline to file a return and also to pay any tax owed is January 31, 2024. And as Myrtle Lloyd, HMRC’s director general for customer services, says: “The clock is ticking.”
Official figures show that almost 6.5 million people have beaten the clock and have filed – including 49,317 customers who used the New Year holiday to get a head start on their tax obligations.
According to the data, 25,769 people submitted their self-assessment tax returns over Christmas Eve, Christmas Day and Boxing Day. Another 25,593 taxpayers filed their returns online on New Year’s Eve.
HMRC has a wide range of resources online, including help on the GOV.UK website, to support people to complete their tax return.
The quickest and easiest way people can pay their tax bill is via HMRC’s app which is free and secure. Information about the different ways to pay, can also be found on GOV.UK.
People who are unable to pay in full can access support and advice on GOV.UK. HMRC may be able to help by arranging an affordable payment plan, known as ‘Time to Pay’ for those who owe less than £30,000.
HMRC will consider the reasons for not being able to meet the deadline. Those who provide HMRC with a reasonable excuse may avoid a penalty.
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 three months, additional daily penalties of £10 per day, up to a maximum of £900
• after six months, a further penalty of five per cent of the tax due or £300, whichever is greater
• after 12 months, another five per cent or £300 charge, whichever is greater
There are also additional penalties for paying late of five per cent of the tax unpaid at 30 days, six months and 12 months. Interest will also be charged on any tax paid late.
• To discuss any tax issues please contact me on 01772 430000
