With the 31 January deadline just days away, 3.4 million self assessment taxpayers have yet to file their 2023/24 tax return, risking a £100 penalty. Although 8.6m taxpayers have submitted their returns, 28% remain at risk of late filing penalties.
The penalties include:
- £100 fixed penalty for missing the deadline, even with no tax due.
- £10 daily penalties after three months, up to £900.
- 5% of tax owed or £300 (whichever is greater) after six and 12 months.
High earners should note that the £50,000 high-income child benefit charge threshold applies to 2023/24 returns. For 2024/25 returns, this threshold increases.
A key change means employees earning below £150,000 with only PAYE income are no longer required to file, however, accountants recommend filing if you make pension contributions or have additional income. Furthermore, don’t overlook cryptocurrency gains, as these are subject to capital gains tax and must be reported.
If you haven’t registered for self assessment yet, it might be too late to obtain a unique taxpayer reference (UTR) in time, as HMRC typically takes around 10 days to issue it.
For quick payments, use HMRC’s secure app – over £605m in tax bills have already been paid this year through it. Don’t forget to include your bank details in your tax return to ensure any repayments can be processed smoothly.
HMRC accepts limited excuses for late submissions or payments, so act now to avoid penalties, interest charges, and future complications.Â
Talk to us about your tax return.
