Less than a month to complete and pay self-assessment

Those who still need to complete and pay for their tax return are being reminded that they have less than a month to do so.

There are still around 5.4 million people who are yet to do so in time for the 31^st of January 2025 deadline and for those who are panicking that they won’t be able to pay their owed tax all in one go, there might be the option to spread these costs.

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.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said, “We know completing your tax return isn’t the most exciting item on your New Year to-do list, but it’s important to file and pay on time to avoid penalties or being charged interest.

“The quickest and easiest way to complete your tax return and pay any tax owed is to use HMRC’s online services – go to GOV.UK and search ‘Self Assessment’ to get started now.”

HMRC is reminding anyone who is required to file a tax return for the 2023 to 2024 tax year that they will face penalties if they fail to do so on 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

There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months. If tax remains unpaid after the deadline, interest will also be charged on the amount owed, in addition to the penalties above.

To find out more about contracting please contact Zeeshan on 01206 591 000 or email zeeshan.anwar@contractorumbrella.com.