HMRC tax return deadline approaching: who needs to submit a self-assessment?

The deadline for filing a tax return with His Majesty’s Revenue and Customs is fast approaching, and millions of people still need to complete their tax returns.

With just two weeks to go before all self-filed tax returns are due, it’s important to make sure you don’t get stung by a penalty from the tax authorities.

Last week, HMRC said there are still 5.4 million people who have not yet filed their tax returns, despite around 4,400 people filing their tax returns on Christmas Day.

This is Money shows you what you need to know to make sure you’re registered and completed your tax return before the January 31 deadline.

Deadline: Online tax returns must be submitted to HMRC by midnight on January 31st

When is the deadline and do I have to file a tax return?

For those filing a tax return online, it is due by midnight on January 31st. This concerns the tax year ending on April 5, 2024.

If you were hoping to complete a paper tax return and haven’t done so yet, you’ve unfortunately missed the deadline. Paper tax returns had to be submitted by October 31 last year.

You may not be sure whether you need to file a tax return or not.

You must file a tax return if you were self-employed and earned more than €1,000, were a partner in a general partnership, had a total income of more than €150,000, owed capital gains tax or had to pay high income tax. child benefit allowance.

You must also file a tax return if you have received tax-free income from renting a home; committee; income from savings and investments above a certain level; or foreign income.

If you have not filed a tax return before and are due to do so this year, you should have registered for the self-assessment in October. If you do not do this, you may be fined for failure to report. This penalty is a percentage of the tax you owe.

A non-intentional deficiency filed with HMRC within 12 months of the tax becoming due would result in a penalty of up to 30 percent of your liability. In the event of a deliberate and hidden error, you could be charged up to 100 percent of your tax debt.

If you’re not sure whether you need to file a tax return, you can check whether you should take advantage of it HMRC website.

If you filed a tax return last financial year but believe it is no longer necessary, you must tell HMRC, and they must agree, before the tax return filing deadline of January 31.

If HMRC has not agreed that you do not need to file a tax return, you will still need to complete and submit one, even if you do not owe any money. Otherwise you risk a fine.

By filing a tax return you can also voluntarily pay national insurance contributions, prove that you are self-employed and claim benefits such as tax-free childcare, or claim an income tax reduction.

What happens if you do not file a tax return on time?

“Filing your tax return on time is absolutely crucial if you want to avoid being fined,” says Paul Falvey, tax partner at BDO.

If you are required to file a return and you do not do so within the deadline, HMRC will impose a fine of £100.

Worse still, if you fail to do so for more than three months the fine will increase by £10 per day, up to a maximum fine of £900.

“If you owe taxes and are even late in filing, the penalty costs add up quickly,” Falvey said.

After six months, HMRC will charge a further penalty of five percent or £300.

After twelve months they add another five percent or £300.

In addition, HMRC may charge a default interest rate of 7.25 percent, which will increase to 8.75 percent from April this year.

Seb Maley, CEO of Qdos, said: ‘In addition, unfiled, late or incorrect tax returns can increase the chance of being investigated by HMRC.

“Doing everything you can to meet this month’s deadline and file accurate tax returns is critical.”

Can I appeal against a fine from HMRC?

Fortunately, HMRC allows you to appeal a late payment penalty, provided you have a ‘reasonable excuse’.

For example, if your partner or close family member died shortly before the tax return deadline, if you were unexpectedly hospitalized or had a serious illness.

Other excuses considered reasonable include problems with HMRC’s online service, unpredictable postal delays or possibly that you were unaware of your legal obligation to file a return. Whether this is acceptable depends on your specific case.

If HMRC agrees that you have a reasonable excuse for missing the deadline, and your penalty is waived or varied, you should still submit your return as soon as possible.

You will normally have 30 days from the date you receive the fine to contact HMRC or issue a case and appeal.

You can appeal against a fine through HMRCs SA 370 form.

However, if HMRC does not agree that you have a reasonable excuse, you can appeal to the First-tier Tribunal to decide your case.

It is worth considering that if you escalate your appeal you will ultimately have to pay both your own legal costs and those of HMRC.

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