Time is ticking for millions of people across the UK who need to submit their self-assessment tax return for the financial year 2023/24, warns HM Revenue and Customs (HMRC). Those who miss the January 31 deadline for filing will be slapped with a £100 fine even if no tax is owed.
To register for self-assessment and avoid a possible “failure to notify” penalty from HMRC, individuals must take action by Saturday, October 5.
A wide range of people are required to register, including new entrepreneurs who’ve earned over £1,000 before deductions, anyone wishing to make voluntary Class 2 National Insurance Contributions on smaller earnings, or new partners in business partnerships. It’s also crucial for anyone who has received any untaxed income above £2,500 or high earners tangled up with Child Benefit payments to sign up by the fast-approaching deadline.
The Low Incomes Tax Reform Group has cautioned that missing the October 5 cutoff could lead to a hefty “failure to notify” charge based on a percentage of the due tax if HMRC is not informed on time.
If you inform HMRC late, you can typically dodge a failure to notify penalty if you can both submit your 2023/24 tax return online and pay any income tax due for the 2023/24 tax year by January 31. However, if you fail to register for self-assessment, you’re more likely to forget to file the return altogether – resulting in a £100 fine, and potentially additional penalties.
HMRC has stated that it “urges customers to file their return early to provide peace of mind and to also allow time to consider opportunities to spread the cost of their tax bill, claim refunds earlier and avoid costly errors caused by rushing.”
