The deadline for submitting your self-assessment tax return is rapidly approaching. Failure to meet the deadline will result in an immediate £100 penalty from HMRC. The cut-off time for filing your tax return for the 2024/25 tax year is midnight on January 31. According to the latest update from HMRC, as of January 23, 3.3 million individuals still need to file their tax returns.
There are various reasons why you may need to file a self-assessment tax return. For instance, if you are self-employed, have earned additional income beyond your primary employment, generate income from renting out a property, or are a high earner claiming Child Benefit, you are required to complete a self-assessment.
Submitting your self-assessment after the deadline will result in a £100 fine from HMRC, even if you do not owe any tax but are registered for self-assessment. The penalty increases to £10 per day, up to a maximum of £900, if you fail to file after three months. Subsequently, after six months, you will be charged 5% of the tax owed or £300, whichever is higher, and this cycle repeats after 12 months.
It is crucial to pay any tax owed by January 31 to avoid incurring interest on late payments. If you owe less than £30,000 and are facing difficulties in settling your tax bill, you may qualify for a payment plan with HMRC known as “Time to Pay.” 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.
It is necessary to have registered for self-assessment by October 5 of the previous year. According to MoneyHelper.org.uk, you may need to file a self-assessment tax return under various circumstances. You can also verify if you need to submit a tax return by checking the HMRC website online.
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