Brits who’ve been busy selling on platforms like eBay, or running their own businesses, are being cautioned about a potential shock in the new year if they don’t get their affairs in order soon.
January 31 is the critical cut-off for filing your 2023/2024 tax return and settling any tax owed on income that wasn’t taxed throughout the year.
While self-employed individuals are likely to have this HMRC deadline circled in red on their calendars, it’s also applicable to those who sell through sites such as Etsy, eBay, or Vinted and have made over £1,000 in the 2023/2024 tax year.
Experts are urging Brits not to overestimate the time they have left to comply with these obligations.
Alastair Douglas, CEO of TotallyMoney, has issued a stark warning, urging people to “act now” to avoid a taxing disaster. He pointed out: “Although HMRC aren’t always quick to answer your calls, they can be when it comes to handing out fines for late filing. So don’t get caught out.”
Many procrastinators who leave this financial chore until after the New Year’s celebrations often encounter last-minute hitches or find themselves grappling with queries they’re unsure how to resolve.
This results in countless people waiting on hold with HMRC in the New Year, which coincidentally is also when hold times with the tax service are at their longest.
In an extreme scenario, people risk missing the January 31 deadline while attempting to contact HMRC after beginning their return slightly too late.
Alastair observed: “It’s estimated that each year, taxpayers spend around 7 million hours on hold to the tax office, with wait times peaking every January. And as the deadline approaches, time spent on hold gets longer, and in particular during the afternoon.”
As an alternative, the expert strongly advised sorting out your tax return now, pointing out that even the tax authority takes a few days off for the holidays.
The expert added: “So while you might not be planning on sorting out your tax return over Christmas, it might actually save you time in the long run — while making January a little less stressful.”
This year, HMRC phone lines will be closed on December 25 (Christmas Day), December 26 (Boxing Day), and January 1 (New Year’s Day).
Additionally, the Edinburgh HMRC office will be closed on January 2, and the contact centre (0303 1234 500) will operate on reduced hours on December 24 and December 31, closing at 2pm instead of the usual 6pm.
Alastair commented: “That means there’s plenty of opportunities to speak to somebody, and the chances are, not many other people will be busy sorting their finances either. So you should get through quickly.”
