The deadline for self-assessment tax returns is fast approaching, and HMRC has issued a reminder to millions of taxpayers in the UK. According to HMRC, 3.4 million people have yet to file their self-assessment returns. Failure to meet the January 31 deadline could result in a £100 penalty. Myrtle Lloyd, HMRC’s Director General for Customer Services, emphasized the urgency by stating, “Time is running out for the millions still to file their Self Assessment tax return by 31 January.” The HMRC is encouraging individuals who have not begun their returns to seek help and support by visiting GOV.UK and searching for ‘Self Assessment.’
As of now, 66% of taxpayers have already submitted their self-assessment tax returns, amounting to 8.6 million people. However, 3.4 million taxpayers are yet to file their returns. Those who have completed their returns can conveniently pay their taxes using the HMRC app. Since April 6, 2024, nearly 360,000 individuals have already paid their self-assessment tax bills, totaling over £605 million, through the app. Taxpayers are advised to provide their bank details in their tax returns to facilitate quick and secure repayments if eligible.
HMRC will consider individuals’ reasons for failing to pay their tax bill or arrange a payment plan by the deadline on a case-by-case basis. Taxpayers with acceptable explanations may avoid penalties, while others could face an initial fixed penalty of £100 even if no tax is due, with additional daily penalties of £10 per day after three months up to a maximum of £900. After six months, a further penalty of 5% of the tax due or £300, whichever is greater, may apply, and after twelve months, an additional 5% or £300 charge could be levied. Penalties for late payment include 5% of the unpaid tax at 30 days, six months, and twelve months past the deadline, along with interest on the outstanding amount.
In case of failure to meet the tax payment deadline, taxpayers may incur further penalties and interest charges on the overdue amount. Therefore, it is imperative for taxpayers to meet the January 31 deadline for their self-assessment tax returns to avoid penalties and ensure timely payment of taxes. By being proactive and seeking assistance if needed, taxpayers can fulfill their obligations and avoid unnecessary financial consequences.
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