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7 Surprising Reasons You’ll Regret Missing the 2023/24 Self Assessment Tax Deadline— No 5 Will Shock You!
Did you know HMRC has mailed over 11 million letters this year, urging taxpayers to complete their 2023/24 Self Assessment income tax returns? But millions are already scrambling to meet the 31st January 2025 deadline. Read on to discover why waiting until the last minute could cost you dearly—and how to sidestep those dreaded penalties!
Don’t Let Festive Plans Sabotage Your Tax Return
Taking time off to enjoy the holiday season sounds great—until your tax chaos comes back to haunt you. Procrastination fuels stress, and if there’s an error in your return, you’ll have almost no time to correct it. Plus, HMRC has zero tolerance for missed deadlines—hefty penalties and interest may follow.
Why You Need to File (or Authorise an Accountant) ASAP
- Paper Returns Missed the Boat: The 31st October 2024 paper deadline is gone. Any paper returns now automatically trigger a £100 penalty, even if you owe no tax or settle up on time.
- Online Filing Deadlines: The official 31st January 2025 online submission date might seem far off, but the HMRC website often overloads near the deadline. Last year alone, over 600,000 people filed on the due date—don’t get stuck in a virtual queue!
- Activate or Recover HMRC Details: If you’re new to online filing, you’ll need an Activation Code—it could take up to 10 days to receive. Lost your User ID or password? That’s another potential 10-day delay.
- Accountants Make Life Easier: By authorizing a tax expert, you can outsource the entire process. They’ll handle e-filing and guide you through allowances or tax breaks you never knew existed.
Penalties That Will Hurt Your Wallet
In previous years, a late return penalty might have been waived if you owed less than £100 or paid on time. Now, the new regime is far stricter:
- Initial £100 Penalty (applies regardless of how much tax you owe)
- £10 per Day after 3 months (up to £900 max)
- 5% of Tax Due or £300 (whichever is greater) after 6 months
- Further 5% or £300 (whichever is greater) after 12 months, rising to 100% of tax in severe cases
You can’t claim these penalties as a deductible expense—they’re a complete loss. Hiring a tax pro could save or defer tax well beyond what you might expect.
Payment Essentials
31st January 2025 = Payment Due: Even if you file online, HMRC calculates your liability; they won’t flag missed claims or tax-saving strategies. An accountant will!
Beware of Tax Refund Scams: HMRC will send any refund by cheque or direct deposit shortly after submission. Beware of phishing emails—they’re rampant this time of year.
Payments on Account (POA): You may need to pay in advance for the following tax year on 31st January and 31st July. These partial payments each typically match half of your previous year’s total tax. You can reduce POAs if your income is lower this year.
Cash Flow Tip: Stash 20%–30% of your income aside throughout the year so you’re prepared for any tax bill that arises.
Interest Charges on Late Payments
HMRC applies interest on all overdue amounts. New additional charges kick in if your payment is late by:
- 30 Days: 5% of the overdue tax
- 6 Months: Another 5%
- 12 Months: A further 5%
Don’t let penalties and interest erode your hard-earned profits. Our trusted tax advisers and accountants can tackle the admin, help you minimise or delay your tax, and keep you updated on vital changes.
Disclaimer: Information is based on current HMRC guidance at publication and may be subject to change. This content is for information only and should not be taken as formal advice. Individual circumstances can vary—always seek personalized guidance before acting. If you act or fail to act on the basis of this content without our written recommendations, we accept no liability for any resulting financial loss.
Ready to dodge penalties and keep more of your money? Act now—before the 31st January 2025 deadline sneaks up on you! Call us on 08001357323 and your future (and your bank account) will thank you.
FAQs
Some of the very common questions you may have
A self-assessment tax return is a way to report your income to HMRC and ensure that you’re paying the right amount of tax each year. On the form, you must declare all your income, claim allowances and tax reliefs, and calculate your tax liability. If you’ve paid too much tax, you’ll get a refund, but if you haven’t paid enough, you’ll need to make an extra payment. Completing a tax return can be complicated, so many people get help from accountants or tax advisers. Remember, you must complete your tax return accurately and on time, or you may face penalties and interest charges.
Most people in the UK pay taxes automatically through the PAYE system. However, if you’re self-employed, a company director, receiving income from renting out a property, earning money from savings, investments, or dividends, or have income from overseas, you may need to fill out a tax return. Additionally, those earning over £125,000 or with untaxed income from tips or commission may also need to do so. It’s important to keep in mind that you must fill out a return if HMRC asks you to, even if you don’t think you owe any tax. Be honest, keep good records, and seek help if needed.
The deadline for submitting your self-assessment tax return depends on whether you choose to file a paper return or an online return.
For paper returns, the deadline is usually October 31st, following the end of the tax year. For online returns, the deadline is normally January 31st, following the end of the tax year. If you’re filing online for the first time, you need to register in advance.
Remember to pay any tax owed by the deadline. If you miss the filing deadline, you’ll usually face a penalty. Contact HMRC as soon as possible if you are struggling to pay your taxes on time.
By filing and paying on time, you’re playing your part in keeping the UK’s tax system fair and effective.
Late filing of self-assessment tax returns can result in penalties from HMRC. These penalties are designed to encourage timely filing and can add up quickly. The penalties start from £100 for being a day late and can go up to 100% of the tax due if the return is a year late. Late payment also attracts penalties starting at 5% of the unpaid tax after 30 days. HMRC can start a criminal investigation in serious cases. However, penalties may be appealed with evidence of a reasonable excuse. It’s important to file and pay on time if possible and communicate with HMRC if struggling.
You can make changes to your self-assessment tax return after filing it until January 31st of the following year. To amend, log into your HMRC account and select the tax year you want to update. If you owe more tax, pay it promptly to avoid interest and penalties. If you overpaid, HMRC will refund you. If you need more clarification, seek advice from a tax adviser or accountant. Remember to file accurate returns and correct any mistakes promptly to maintain the integrity of the system.
Having the right records is crucial when completing your self-assessment tax return, as HMRC can ask to see evidence of the figures you’ve reported. For self-employed individuals, keeping detailed records of business income and expenses is essential. You should also keep records of any income from abroad, rental income, investment income, and any charitable donations or pension contributions. Additionally, keeping records of any expenses you want to claim against your tax is important. HMRC recommends keeping your records for at least five years after the submission deadline of the relevant tax return and suggests using accounting software or a simple spreadsheet to keep track of your income and expenses. By keeping accurate records, you’re contributing to a fair and transparent tax system for everyone.
If you can’t pay your self-assessment tax bill, act quickly and contact HMRC’s Payment Support Service. They’ll work with you to agree on a payment plan that you can afford. Remember to file your tax return by the deadline, even if you can’t pay on time. If your business is struggling, you can reduce the payments to your account. In serious cases, consider other options with professional advice. The earlier you act, the more options you’re likely to have.
We offer a range of services to make the self-assessment tax return process stress-free. Our accountants evaluate your tax situation, gather your information, complete and file your return, calculate your tax liability, provide proactive advice, and handle HMRC queries. We can also handle more complex matters like foreign income, capital gains tax, rental income, and self-employment.
At our core, we’re committed to making your life easier. Our top priority is ensuring that your tax experience is as stress-free as possible while also maximizing your tax efficiency. And don’t worry; we take confidentiality seriously so that you can trust us with all your tax needs!
We offer a transparent pricing model for their self-assessment tax return service. After a free initial consultation, they provide a personalized fixed-fee quote based on the complexity of your tax situation and the services you require. Our fees are not the cheapest but reflect the high-quality, comprehensive service we provide. We can help you identify allowances and reliefs, potentially reducing your tax bill and ensuring your return is accurate and filed on time, helping you avoid costly penalties. To get an accurate quote for your self-assessment tax return, get in touch with us today.
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