The deadline for submitting your tax return is fast approaching. If you miss the deadline, you could face a £100 fine 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 file their returns.
There are various reasons why you may need to file a self-assessment tax return. For instance, if you are self-employed, earned additional income apart from your primary job, receive income from renting out a property, or are a high earner claiming Child Benefit, you are required to complete a self-assessment.
Failing to submit your self-assessment by the deadline will result in a £100 penalty from HMRC, even if you do not owe any tax but are registered for self-assessment. The penalty can increase to £10 per day, up to a maximum of £900, if you fail to file after three months. Subsequently, after six months, you may face a charge of 5% of the tax owed or £300, whichever is higher, and this pattern repeats after 12 months.
It is essential to settle any tax liabilities by January 31 to avoid accruing interest on late payments. If you are struggling to pay and owe less than £30,000, you might qualify for a Time to Pay arrangement with HMRC. However, you must not have existing payment plans or debts with HMRC, have updated 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. MoneyHelper.org.uk outlines circumstances that may necessitate filing a self-assessment tax return. You can also verify your obligation to submit a tax return by checking the HMRC website.
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