The deadline for submitting your self-assessment tax return is quickly approaching. Failure to meet the deadline will result in an immediate £100 penalty from HMRC. The deadline for the 2024/25 tax year is midnight on January 31, with 3.3 million individuals still needing to file as of January 23, according to HMRC.
Various circumstances necessitate filing a self-assessment tax return. For instance, if you are self-employed or have earned additional income apart from your primary job, you are required to file. Additionally, individuals who earn income from renting out property or high earners claiming Child Benefit must also complete self-assessment.
Missing the deadline incurs a £100 fine from HMRC, even if no tax payment is due but you are registered for self-assessment. Penalties increase to £10 per day, up to a maximum of £900, after three months of delay. Subsequently, after six months, a charge of 5% of the tax owed or £300 (whichever is higher) applies, with a repeat at the 12-month mark.
It is essential to settle any tax owed by January 31 to avoid accruing interest on late payments. For those struggling to pay, setting up a Time to Pay arrangement with HMRC may be an option if the tax debt is less than £30,000. To qualify, one must not have other payment plans or debts with HMRC, file up-to-date tax returns, and request assistance within 60 days after the payment deadline.
Individuals should have registered for self-assessment by October 5 of the previous year. MoneyHelper.org.uk outlines scenarios where filing a self-assessment tax return may be necessary. Furthermore, individuals can verify their requirement to submit a tax return through the HMRC website.
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