Four million taxpayers are yet to file their self-assessment ahead of next week’s deadline, HMRC has revealed.
The date to complete the return (along with any payment) for the tax year 2022 to 2023 is 31 January, with late submissions receiving a £100 late penalty.
Taxpayers who miss the cut-off time can avoid the fine if they contact His Majesty’s Revenue and Customs (HMRC) and let them know the reason why. If the authority considers the explanation to be reasonable, the penalty will be waived.
Missing the return date can prove to be costly with tax added to the amount due if the delay is over six months.
The following penalties for late 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
Contact HMRC if you think self-assessment isn’t needed
The HMRC has also urged anyone who thinks they no longer need to complete a self-assessment bill to contact them before the 31 January deadline.
This, for example, would apply if you were self-employed but are no longer trading and have tax deducted through PAYE by your new employers.
Meanwhile, one in five of the 12 million UK taxpayers to file their return this year are set to use their overdraft to pay for their bill. If you are concerned about paying the full amount of your tax bill, a ‘time to pay’ option is available.
This arrangement gives the opportunity to pay the outstanding amount in instalments but only if you owe less than £30,000.
The ‘time to pay’ arrangement can be selected when completing your return, and if you can pay the tax bill in full over 24 months, a pay plan will appear on the page automatically.
But, if that amount is not possible within that timeframe, a payment plan can still be set up, although you’ll need to call the HMRC on 0300 123 1813.
‘Familiarise yourself before filling out the form’
Myrtle Lloyd, HMRC’s director general for customer services, said: “If you are a self-assessment taxpayer, now is the time to take action and get your return done. People can familiarise themselves with the process by checking out HMRC’s online resources on GOV.UK.
“Once a tax return is submitted, it’s easy to find out what’s owed and to pay online or using the HMRC app. Just search ‘pay my self-assessment’ on gov.uk to find out more.”
