31 January is the deadline for submitting your 2023/24 self assessment tax return. It’s important that you meet your reporting obligations to HMRC on time. Failure to do so could result in late filing penalties being applied and interest charged on any unpaid tax.
Do you need to file a tax return?
Many people will be familiar with submitting their tax return and complete the process each year. If you haven’t previously completed this process and are unsure if you need to, you can visit the HMRC website and use their checker tool which will let you know if you need to file one. Check if you need to send a Self-Assessment tax return – GOV.UK
You will need to complete a 2023/24 tax return if any of the following apply in the year to 5 April 2024:
- You are self-employed and your income was more than £1,000
- You are a partner in a business and your income was more than £1,000
- You have property income in excess of £1,000
- You are a company director with untaxed income
- You have untaxed savings income of more than £1,000 or £500 if you pay tax at higher rate
- you have dividend income above the tax free amounts
- You earned £150,000 or more
- You received income from abroad
- You earned more than £50,000 and claim child benefit
- You want to claim relief for employment expenses in excess of £2,500
You will also need to submit a tax return if you received any untaxed income from property, savings, investments, dividends or income from overseas during the year to 5 April 2024.
What happens if I miss the deadline?
If you don’t file a tax return online by 31 January 2025, a £100 late filing penalty will be applied.
You can appeal the penalty, but the conditions for this are very strict and HMRC are unlikely to cancel a late filing penalty except for exceptional circumstances.
In addition to the late filing charge, further penalties also become payable once the filing deadline has passed:
|
Time Overdue
|
Penalty |
| Up to 3 Months |
£10 per day, up to a maximum of £900
|
| Over 5 Months |
5% of the outstanding tax liability or £300 whichever is higher.
|
| Over 11 Months |
5% of the outstanding tax liability or £300 whichever is higher.
|
For those who have tax to pay, HMRC will automatically apply interest to all late payments. The interest rate on outstanding income and capital gains tax is currently 7.25%.
If you miss the filing deadline, in addition to the late filing penalties, late payment penalties are also payable on top of the interest once a 30-day period has passed from the due date.
| Time Overdue |
Penalty
|
| 30 Days |
5% of your tax liability at this date
|
| Over 5 Months |
5% of the outstanding tax liability at this date
|
| Over 11 Months | 5% of the outstanding tax liability at this date |
If an individual is unable to make their tax payments, it is important that they contact HMRC as soon as possible and discuss the option of a Time to Pay arrangement. If this is agreed, no late payment penalty will be applied, but the late payment interest will still apply.
A Time to Pay arrangement can be set up if all of the below conditions are met:
- Your Self-Assessment Tax Return filing is up to date including your latest Tax Return.
- You do not have any other outstanding payment plans or debts to settle with HMRC.
- You are within 60 days of the payment deadline.
We are here to help.
If you have any questions about how to complete your tax return or need specific advice, please do not hesitate to contact us. Our team will be happy to help.
