The deadline to submit your self-assessment tax return is approaching, and missing it will result in a £100 penalty from HMRC. The cutoff time is midnight on January 31 for the 2024/25 tax year. According to recent data from HMRC, 3.3 million individuals still need to file their returns as of January 23.
Filing a self-assessment tax return is necessary for various reasons, such as being self-employed, earning additional income beyond your primary job, generating income from property rentals, or being a high earner claiming Child Benefit. Failure to meet the deadline will incur a £100 fine from HMRC, regardless of whether you owe any taxes.
The penalty escalates to £10 per day, up to a maximum of £900, for delays beyond three months. After six months, a charge of 5% of the tax owed or £300, whichever is higher, applies. This process repeats after 12 months. It is crucial to settle any outstanding taxes by January 31 to avoid accruing interest on late payments. Additional fines of 5% of the unpaid tax are imposed after 30 days, six months, and 12 months.
If you are having difficulty paying your tax bill and owe less than £30,000, you may qualify for a Time to Pay arrangement with HMRC. To be eligible, you must not have existing payment plans or debts with HMRC, have up-to-date tax returns, and request assistance within 60 days of the payment deadline.
Ensure you registered for self-assessment by October 5 of the previous year. Visit the HMRC website or MoneyHelper.org.uk to determine if you need to file a self-assessment tax return. Stay informed with Daily Mirror on Google News for timely updates.