Taxpayers risk an automatic £100 fine if they miss the January 31 deadline to submit their self-assessment tax return.
The Christmas and New Year period sees a surge of online tax return submissions to HMRC with many taxpayers choosing to file their return on Christmas Day itself.
Last year, nearly 26,000 people filed their self-assessment returns between December 24 and 26.
Submissions need to be done online, as the deadline for anyone wanting to submit a paper return was 30 October.
The current tax year applies to income earned between April 6 2023 and April 5 2024, known as the tax year 2023/24.
HMRC does possess a database of all UK employees paying tax, but this does not mean they are able to know exactly who is meant to complete a self-assessment form.
Chances are you may need to fill in a tax return if:
You are self-employed as a sole trader, and earned more than £1,000
You are a partner in a business partnership
You earn over £100,000 even if you pay tax via PAYE
If HMRC have sent you notice to complete one, unless you contact them and they agree to cancel the notice
You have any untaxed income from
Renting out a property
Tips and/or commissions received cash in hand rather than via payroll
Interest on your savings or investments
Dividends
Foreign income (including foreign pensions)
You also have the OPTION to send a tax return, should you wish to:
Most pensions are taxed at source but there are two main exceptions:
Foreign pensions – those who have built up pension funds overseas during their working lifetimes and are now receiving the benefit of such in Britain need to complete a UK tax return.
Some recipients of the state pension – may need to complete a tax return. HMRC will first attempt to collect the taxes due on this from other sources of income, such as via PAYE or via your occupational pension. For most people with a State Pension, HMRC will send a simple assessment showing how much tax they think you owe. If the simple assessment is correct, a tax return is not required.
The deadline to let HMRC know that you need to complete a tax return this year has already passed, as it was October 5 after the end of the tax year (April 5).
But if you have just learnt that you need to do one, then it is a ‘better late than never’ type situation.
Following this self assessment HMRC link, you can register. HMRC will send you a Unique Taxpayer Reference’ (UTR) in the post and then sign in either using Government Gateway or Gov.UK verify.
Once you have an account and are logged in, you will be able to fill in your Self Assessment.
Late submissions are subject to penalties. The penalty for being up to three months late is £100 and the three months begins from January 31 2025.
Late payments of tax are subject to a penalty and are charged interest. You can estimate your penalty using this HMRC tool.
If a significant portion of your income is not taxed at source, HMRC requires you to enter a system known as ‘payments on account’ (POA).
