Millions of customers still to file their Self Assessment tax return with one week left until the deadline
With one week to go until the deadline, HM Revenue and Customs (HMRC) is urging fewer than 3.4 million customers to get their Self Assessment tax return done.
More than 12 million customers are expected to file a tax return for the 2021 to 2022 tax year and pay any tax owed by 31 January deadline. To date, almost 8.7 million customers have already filed their tax return.
Last year, more than 10.2 million customers filed their tax returns for the 2020 to 2021 tax year by the deadline on 31 January 2022.
Anyone who is yet to start their Self Assessment, or needs help completing it, can visit GOV.UK to access a wide range of resources including guidance, webinars and YouTube videos. Customers are encouraged to check online for help before calling HMRC during what is the busiest time of the year.
Myrtle Lloyd, Director General for Customer Services, said: “Time is running out for millions of people who still need to file their Self Assessment and pay any tax owed.
“There’s no need for customers to call us, they can save time and search ‘Self Assessment’ on GOV.UK for a wealth of information and resources to help them complete their tax return.”
Customers can pay their tax bill in around 60 seconds via the free and secure HMRC app. The app can also provide useful information for those yet to complete their tax return including their National Insurance number, Unique Taxpayer Reference and any PAYE information.
Customers who are unable to pay what they owe in full, may be able to set up a payment plan, allowing them to spread the cost into manageable monthly instalments. Self Assessment customers can use self-serve Time to Pay on GOV.UK if they:
have filed their tax return for the 2021 to 2022 tax year
owe less than £30,000
can pay in full within 12 months
For customers who pay their current estimated tax bill via Payment on Account, the first instalment for the 2022 to 2023 tax year is due on 31 January.
Anyone who files their tax return or pays any tax owed after 31 January may face a penalty.
HMRC will treat those with genuine excuses leniently, as it focuses on those who persistently fail to complete their tax returns and deliberate tax evaders. The penalties for late tax returns are:
an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
after 12 months, another 5% or £300 charge, whichever is greater
There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months.
Customers need to be aware of the risk of falling victim to scams. Check HMRC scams advice on GOV.UK.
The Chancellor is in Edinburgh today to showcase the support the UK Government is providing the people of Scotland through a £37bn package.
It comes after July’s National Insurance Contribution threshold rise for workers across Scotland, putting £330 back into the pockets of a typical employee this year and saving households over £260m.
The Chancellor will also be meeting leaders of Scotland’s green energy industry, emphasising our drive to improve Britain’s energy security.
The Chancellor will today reaffirm the UK Government commitment to help the people of Scotland with rising costs in the coming months, as it continues to deliver its £37bn package of support.
On a visit to Edinburgh, Nadhim Zahawi will also emphasise the UK Government’s commitment to energy security and making sure we have the green supplies of power we need for the future.
He will be meeting some of the figures who have led Scotland to the cutting edge of green power generation technology, as well as apprentices starting out in the industry. His visit will take in one of Scotland’s leading companies in the field of tidal energy as well a windfarm capable of providing power to up to 11,000 homes.
This comes in the same week that Chancellor began a series of meetings with energy generation companies as part of ongoing discussions on what more the industry can do to ensure markets function effectively for consumers.
The visit comes as the UK government is providing 689,000 households in Scotland with the £650 cost of living payment as well as £400 to help people with their energy bills, from October, over the winter months. It has also committed an extra £82 million for the Scottish Government to help vulnerable families at their discretion – in addition to the significant income tax and welfare powers they already have.
The UK Government has also launched the Review of Electricity Markets Arrangement to address higher energy costs, the need to boost energy security and the need to move the UK to a cleaner energy system as well as the Energy Security Bill, the most ambitious piece of legislation in the sector for more than a decade.
Zahawi is also sitting down with the leaders of Scotland’s financial services industry, which employs thousands of people in Scotland. He will listen to their concerns and emphasise the UK Government’s commitment to the sector.
The Chancellor will also meet performers from the world-famous Royal Edinburgh Military Tattoo.
Chancellor of the Exchequer, Nadhim Zahawi, said: “I know families across Scotland are feeling anxious about rising costs and the UK Government has stepped in to ease pressures on household budgets.
“We delivered an unprecedented level of support in July with a National Insurance cut that will put £330 back into workers’ pockets this year, while many of Scotland’s most vulnerable households have already received the first instalment of a £650 Cost of Living Payment.
“And there’s more to come. Not only will the second instalment of that payment arrive this autumn, but I’ve been clear that we are absolutely committed to bringing an equivalent to the £400 energy bills discount to Northern Ireland as soon as possible to ease the burden on families.
“We will continue to help support families in Northern Ireland through the global pressures we are all facing.”
The UK Government has provided a record £41 billion annual settlement for the next three years and we will continue to work collaboratively with them.
Package of measures will increase childcare support for parents, boost the number of childminders and drive take up of childcare offers, to address rising costs
The UK government has today announced ambitious new plans to improve the cost, choice and availability of childcare that will benefit hundreds of thousands of parents across the country.
The UK has some of the highest-quality childcare provision in the world with 96% of early years settings rated by Ofsted as good or outstanding, but it is also one of the biggest costs facing working families today. This means some families, in particular women, feel they are not able to return to the workplace after giving birth due to the high cost of putting their child into paid care.
With the cost of living continuing to rise, the UK government says it is committed to doing everything it can to support families with their finances while keeping people in high-wage, secure jobs that help grow the economy. New plans are being set out today to ensure high-quality and affordable childcare is accessible to all.
To drive down costs for providers and parents, a new consultation will look at increasing the number of children that can be looked after by each staff member in early years settings.
It will propose changing staff-to-child ratios from 1:4 to 1:5 for two-year-olds, giving providers more flexibility in how they run their businesses while maintaining safety and quality of care. Childcare for children aged 0-2 is the most expensive for providers to deliver, largely given the need for higher supervision levels.
This could potentially eventually reduce the cost of this form of childcare by up to 15%, or up to £40 per week for a family paying £265 per week for care for their 2-year-old, if providers adopt the changes and pass all the savings on to parents.
Education Secretary, Nadhim Zahawi said: “Every child deserves a great start in life and that means giving families the support they need.
Childcare is an integral part of our economy, and these reforms prove again that this government is on the side of working families. I’m hugely grateful to the thousands of dedicated early years professionals who provide daily care and education to our youngest children, which is why I am determined to support them by giving them greater flexibility in how they run their services.
This in turn will support thousands of families across the country, helping to develop children’s skills while also supporting parents into work.
The Westminster government will also increase choice and affordability for parents by taking action to open up the childminder market.
While early years settings such as nurseries are the most popular option for families, childminders are generally the most affordable and flexible form of childcare. While the average cost of a two-year-old attending a nursery for 50 hours a week in England is £265 per week, this compares to £236 with a childminder. The government will support more people to become childminders by:
Reducing the upfront costs of becoming a childminder via financial support;
Allowing childminders to spend more of their time working from a greater range of locations – for example a local community centre or village hall rather than their own home;
Giving childminders greater flexibilities within the ratios when looking after their own children or siblings of other children;
Working with Ofsted to reduce inspection of childminders; and
Slimming down the childminder specific Early Years Foundation Stage, reducing the framework by one-third to ensure content is targeted and simpler to navigate.
Government will streamline the Ofsted registration process for providers. More providers registering would mean that parents have a wider choice of providers on which to use these schemes, to pay for childcare that supports their working lives.
The government will also encourage the growth of Childminder Agencies (CMAs). CMAs could ultimately become major players in the childcare market – stimulating competition and driving down costs while providing parents with more options for care. CMAs are central bodies that remove the individual administrative and regulatory burden on childminders, as well as often providing parents with tools such as mobile apps through which to book their childcare.
Minister for Children and Families Will Quince said: “I’m proud of the excellent quality of childcare and early education in England, which is a huge asset to working parents. But too many are struggling to balance work with childcare costs.
“We know there are thousands of parents who are eligible for government support but not taking it up. That’s why we want to increase awareness of the existing childcare offers, allow providers to provide services more flexibly and make sure funding gets where it is needed most.”
Also announced today is an additional £10 million investment for Maintained Nursery Schools, into the supplementary funding they receive from 2023-24.
These settings often care for some of the most disadvantaged children in the country and have additional costs that other early years settings do not – such as the requirement to have a headteacher – because they are constituted as schools.
Since the introduction of the Early Years National Funding Formula in 2017, the UK government has provided supplementary funding for these nurseries to protect their funding levels.
This additional funding forms part of a separate consultation on plans to reform how early years funding is distributed around England, to ensure the system is fair, effective and responsive to changing levels of need.
The UK government has spent more than £4 billion each year for the last five years helping families with the cost of childcare, but almost one million eligible families have not taken up their right to Tax-Free Childcare, which is worth £2,000 per year or £4,000 for children with disabilities. Universal Credit Childcare allows families to reclaim 85% of their childcare costs, worth up to £1,108 per month.
The government is also driving a renewed campaign via the Childcare Choices website so parents can access the support they are entitled to, through a ramped-up marketing campaign backed by £1.2 million, which launched last week. This will also encourage providers to take the necessary steps to offer the full range of childcare support to parents using their services.
Exchequer Secretary Helen Whately said: “Tax-Free Childcare provides a helping hand with childcare costs for working families but thousands of parents could be missing out.
“With almost one million families eligible, I want to encourage parents to take advantage of this support of up to £2,000 per year for each child.”
Secretary of State for Work and Pensions Thérèse Coffey said: “We want more people to take up Universal Credit childcare financial support that is available now to help working families.
“We also want more childcare providers to register with Ofsted and unlock more places that can be subsidised to help with the cost of living.”
The government also offers 15 hours per week of free childcare or early education for all 3- and 4-year-olds, rising to 30 hours for working families, and 15 hours for disadvantaged 2-year-olds.
The Government recently announced that eight million of the most vulnerable households (around a third of all UK households) will receive £1,200 this year and all families will receive £400 – this is on top of changes to Universal Credit, National Living Wage and National Insurance thresholds, so that people keep more of what they earn.
This takes total government cost of living support to over £37 billion – higher than other major economies around the world.
Gemma, from Portsmouth, a mum of one uses Tax-Free Childcare. She said: As a working mum, it can be tough balancing childcare. But Tax-Free Childcare allows me to free up cash that can cover the costs of other things – when you’re talking about saving 20% of your childcare costs it can make a big difference.
The Government has recently launched a new website which brings government support on offer together in one place so the public can see what support they could be eligible for: www.gov.uk/costoflivingsupport
Featuring on radio, social media and bus stop advertising, the campaign aims to increase parents’ awareness and understanding of the childcare support available to them from the government, and maximise the number of people who take up our offer. This will coincide with the school summer holidays, maximising take up over the long break and beyond.
The campaign will signpost to parents, bringing together in one place the support available through Universal Credit, Tax-Free Childcare and 15-30 hours free childcare, clearly setting out eligibility requirements and providing a handy calculator so parents can estimate their entitlement. We will also look at simplifying the website further to make it as easy as possible for parents to understand the support available.
Universal Credit’s childcare offer can save families hundreds of pounds each month – for example, a single parent with a young child who works in social care three days a week could benefit by around £500 a month if they claimed support for their childcare costs.
Tax-Free Childcare helps working families, including the self-employed, to reduce their household costs and keep more of what they earn. Working parents with annual salaries of up to £100,000 can get up to £2,000 of childcare support each year, or £4,000 for children with disabilities.
Recent Tax-Free Childcare statistics from HM Revenue and Customs (HMRC) have revealed that 512,415 families received up to £2,000 towards the cost of their childcare during the 2021 to 2022 tax year, up from 374,135 in the previous year. More than 384,000 families used Tax-Free Childcare in March 2022 – the highest monthly number of families recorded using the scheme since it was launched in April 2017.
The announcements follow visits by Children’s Minister Will Quince to the Netherlands, Sweden, France and Scotland – whose staff:child ratios for two-year-olds the consultation launched today seeks to mirror.
The Government will also explore how to improve recruitment and retention of staff in the sector, giving parents as much confidence in the care their child receives as possible.
