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Newsletter issue – February 2025
With only days to go until the Self-Assessment Tax Return deadline (at the time of writing), millions of people were still apparently yet to submit theirs and pay up, as warnings were issued over fines for failing to comply.
The number of self-employed due to submit their forms still stood at 3.4 million with one week to go, according to HMRC.
Failure to meet the deadline risks a £100 fine – which can increase depending on how late the final submission is. A daily penalty of £10 kicks in after three months, going up to as much as £900. Then the total of the fine rises higher after 6 months; either another 5% of the tax due or £300 - whichever is bigger. A further penalty of another 5% or £300 charge then applies after twelve months.
However, many people who need to file a return have already done so - about 8.6 million - according to the official figures. That's nearly 7 in 10. In terms of how people are paying their tax, around 360,000 have done it via the HMRC app since 6 April 2024. That equates to approximately £605 million paid.
For those who are meeting the deadline, officials highlighted an important instruction - always include your bank details as part of the tax return to ensure you can be re-paid quickly and securely if you're owed a repayment.
Those who provide a 'reasonable excuse' for missing the tax return deadline 'may avoid a penalty,' HMRC stated, adding that: 'customers' reasons for not paying their tax bill or arranging a payment plan by the deadline will be considered individually.'
Whether you're reading this before 31 January 2025 and still need help with your latest tax return or want help to prepare for the new tax year, please give our team a call.
