Taxpayers have been warned that they could face a penalty after HM Revenue and Customs (HMRC) said 5.7 million were still to file their Self-Assessment returns.
The deadline for filing is 31 January with more than 12 million taxpayers expected to file their tax return for the 2021 to 2022 tax year by that date.
In addition to a rush of filings over the Christmas period, HMRC says more than 42,000 taxpayers submitted returns on New Year’s Eve and New Year’s Day.
HMRC says You must send a tax return if, in the last tax year (6 April to 5 April), any of the following applied:
· You were self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on)
· Were a partner in a business
· Earned £100,000 or more
You may also need to send a return if you have untaxed income, such as:
· Some COVID-19 grant or support payments
· Property rental earnings
· Income from savings, investments and dividends
What are the penalties?
· An initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
· Three months: A penalty of £10 a day may be charged, for a maximum of 90 days (£900)
· Six months: You may have to pay a further penalty of five per cent of the tax you owe or £300, whichever is greater
· 12 months: A further penalty of five per cent of the tax you owe may be charged, or £300, whichever is greater. In addition, you may have to pay up to 100 per cent of the tax you owe
There are also additional penalties for paying late of five per cent of the tax unpaid at 30 days, 6 months and 12 months. If taxpayers owe anything after completing their tax return, they can find out about the different ways to pay.
HMRC is also warning taxpayers to be aware of falling victim to Self-Assessment scams. Advice can be found at GOV.UK or speak to our team if you are unsure of any communications relating to your tax return.
Need advice on Self-Assessment or other tax matters? Contact us today.
