The deadline for submitting your self-assessment tax return is approaching fast. Failure to meet the deadline will result in a £100 penalty from HMRC. The cutoff for filing your tax return for the 2024/25 tax year is midnight on January 31. HMRC has indicated that as of January 23, 3.3 million individuals still need to complete their filings.
Various circumstances may necessitate the filing of a self-assessment tax return. For instance, if you are self-employed, received additional income beyond your primary job, earn money from property rentals, or are a high earner claiming Child Benefit, you are likely required to file a self-assessment.
Submitting your self-assessment after 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, if the filing is delayed beyond three months. After six months, a charge of 5% of the tax owed or £300, whichever is higher, is imposed, with similar penalties applied after 12 months.
It is essential to settle any tax liabilities by January 31 to avoid incurring interest on late payments. If you are struggling to pay 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.
Individuals should have registered for self-assessment by October 5 of the previous year. According to MoneyHelper.org.uk, you may need to submit a self-assessment tax return under certain circumstances. You can also use the HMRC website to verify if you are required to file a tax return.