The deadline for submitting your self-assessment tax return is approaching, and missing it will result in an immediate £100 fine from HMRC. You must file your tax return for the 2024/25 tax year by midnight on January 31. As of January 23, HMRC highlighted that 3.3 million individuals still needed to complete their submissions.
It is essential to file a self-assessment tax return for various reasons. If you are self-employed, received additional income apart from your primary job, earn money from renting out a property, or are a high earner claiming Child Benefit, you are required to submit a self-assessment.
Submitting your self-assessment late will incur a £100 penalty from HMRC, even if you do not owe any taxes but are registered for self-assessment. The penalty can increase to fines of £10 per day, up to a maximum of £900, for delays of over three months. After six months, a charge of 5% of the tax owed or £300 (whichever is higher) applies, with a repeat occurrence after 12 months.
Failure to pay any outstanding tax by January 31 will result in accruing interest on late payments. Additionally, a 5% penalty of the unpaid tax is imposed after 30 days, with subsequent fines at six months and 12 months.
If you are struggling to settle your tax bill and owe less than £30,000, you may qualify for a payment plan known as “Time to Pay” with HMRC. To be eligible, you must not have other payment plans or debts with HMRC, have up-to-date tax returns, and request assistance within 60 days after the payment deadline.
It is crucial to have 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 if you need to submit a tax return by checking the HMRC website.
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