1:00 AM 30th January 2025
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A Taxing Few Days Ahead As The Clock Ticks Down On Self-Assessment Deadline
![Image by Markus Winkler from Pixabay]()
Image by Markus Winkler from Pixabay
With the self-assessment deadline fast approaching, millions of UK taxpayers have a stressful few days ahead. Chartered accounting and business advisory firm, Saffery in Leeds has revealed what taxpayers need to know about tax returns and is providing advice to anyone who still needs to file one.
At the end of last week, HMRC revealed that 3.4million people have yet to submit their self-assessment tax return for the 2023/24 tax year, ahead of this week’s deadline at midnight on Friday 31 January.
Generally, anyone with income that is not taxed at source is required to submit a tax return. This can include the self-employed, workers who earn extra money outside their main employment, those who earn more than £150,000 a year, landlords and those who rent out property, people with income from savings or investments, high earners who claim Child Benefit, as well as directors of companies.
In addition, anyone who is required to pay Capital Gains Tax on profits from selling assets, such as second homes or shares, is also required to complete a tax return.
Those who miss the self-assessment deadline will face a fixed £100 late filing penalty, which applies whether or not there is any tax to pay. After three months, if the tax return still hasn’t been submitted, the fine becomes £10 a day, up to a maximum of £900. After six months, another penalty is imposed which equates to 5% of the tax owed or £300, whichever is higher. This is repeated again after 12 months.
The tax owing must also be paid by 31 January to avoid accruing interest at 7.25% annually. After 30 days, a penalty of 5% of the tax owed is added and this is repeated after six and 12 months.
![Chris Luckett]()
Chris Luckett
Chris Luckett, a tax partner from Saffery, said:
“Time is fast running out for those who still need to submit tax returns and pay their tax bills, so anyone who still hasn’t done it needs to act fast. Although it’s a financial burden, adding a penalty to the amount owing due to missing the deadline, will only make things worse.
“It’s also worth checking all the relevant deductions and allowable expenses are claimed appropriately. For example, income tax relief is available on pension contributions, charitable donations made under Gift Aid, business mileage costs and unpaid business invoices or bad debt.
“In addition, where individuals are required to work from home, tax relief can be claimed for the costs of business phone calls as well as a percentage of their electricity and gas costs for their work area. To make it easier to calculate these costs, HMRC also offers a simplified flat rate of £6 per week subject to various conditions.”
"Finally, it is crucial for anyone struggling to pay their tax bill, we would advise them to submit their tax return and contact HMRC as soon as possible. Depending on the amount owing, it may be possible to avoid some of the late penalties by setting up a payment plan with HMRC and spreading payments over the coming weeks or months.”
Saffery employs an 84-strong team in Yorkshire, which includes eight experienced partners leading on every client. Established services that Saffery now offers from its offices at Wellington Place in Leeds city centre, include audit and accounting, corporate tax, VAT, business advisory and personal tax. Saffery also has dedicated sector experts spanning owner-managed businesses and entrepreneurs, private wealth and family trusts, agricultural and rural businesses and charities and not-for-profit organisations.
Saffery was established in 1855 making it one of the UK’s longest-standing independent accounting firms. Today it employs more than 1,200 people across nine UK offices.