Just a couple of days left to complete and pay self-assessment

Those who still need to complete and pay for their tax return are being reminded that they have just a couple of days to do so.

Figures from last week found that while 8.6 million had already completed their tax returns for the 2023 to 2024 tax year, there were still 3.4 million left to be filed by the 31^st of January – this Friday.

You’ll need to file a tax return if you:

• are newly self-employed and have earned more than £1,000.
• are self-employed and earn less than £1,000 but you wish to pay Class 2 NICs voluntarily so you can protect your entitlement to the State Pension and other certain benefits.
• have multiple sources of income.
• earn income from property that you own and rent out.
• receive more than £10,000 in interest from banks and building societies.
• receive dividends in excess of £10,000.
• are claiming Child Benefit and you or your partner have an income above £50,000.

HMRC is reminding people that they will face penalties if they don’t complete and pay for self-assessment in time.

The penalties for late returns are:

• an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
• after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
• after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
• after 12 months, another 5% or £300 charge, whichever is greater

Myrtle Lloyd, HMRC’s Director General for Customer Services, said, “Time is running out for the millions still to file their Self Assessment tax return by 31 January.

“Help and support is available for those who have not yet started their return. Visit GOV.UK and search ‘Self Assessment’ to find out more.”

To find out more about contracting please contact Jaime on 01206 591 000 or email jaime.thorpe@contractorumbrella.com.