Tag: tax return

5.4 million yet to file their tax return

  • Almost 25,000 taxpayers ‘celebrated’ the New Year by filing their Self Assessment tax return
  • If customers miss the 31 January deadline, they could face a penalty

With less than a month to go, the countdown is on for 5.4 million customers who still need to complete and pay their Self Assessment and avoid penalties, HM Revenue and Customs (HMRC) warns.

Thousands of taxpayers have already done so by completing their tax returns before the fizz was barely flat on New Year’s Day. HMRC can today reveal more than 24,800 people filed on 1 January. A further 38,000 had even squeezed theirs in before the bells on 31 December, with 310 filing between 23:00 and 23:59.

Filing your tax return and paying on time plays an important role in supporting public services and the government’s Plan for Change, which is delivering economic stability and investment across the UK. Anyone who is yet to file their tax return can do so online, via GOV.UK.

Anyone required to file a tax return for the 2023 to 2024 tax year who misses the 31 January 2025 deadline could face an initial late filing penalty of £100.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We know completing your tax return isn’t the most exciting item on your New Year to-do list, but it’s important to file and pay on time to avoid penalties or being charged interest.

“The quickest and easiest way to complete your tax return and pay any tax owed is to use HMRC’s online services – go to GOV.UK and search ‘Self Assessment’ to get started now.”

Some 97% of customers now file online and one benefit is that they don’t have to complete it all in one go – they can save what they have done and pick it up again later.

Once a tax return is filed, payments can also be made quickly and securely through the HMRC app. Customers can set up notifications in the app to remind them when payments are due, so they don’t need to worry about missing deadlines or penalties. 

Information about the different ways to pay, can be found on GOV.UK.

HMRC has a wide range of resources online including a series of video tutorials on YouTube, help and support on GOV.UK, to support customers in completing their tax return.

For people who can’t meet the tax return deadline, HMRC will treat those with reasonable excuses fairly if they tell us before 31 January.

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. If tax remains unpaid after the deadline, interest will also be charged on the amount owed, in addition to the penalties above.

If someone regularly sells goods or provides services through an online platform, they may need to pay tax on their income. Customers can find out more about selling online and paying taxes on GOV.UK by searching ‘online platform income’ or by downloading the HMRC app.

The guidance will help them decide if their activity should be treated as a trade and if they need to complete a Self Assessment tax return.

You also may need to file a return if you:

  • are newly self-employed and have earned gross income over £1,000
  • earned below £1,000 but wish to pay Class 2 National Insurance Contributions voluntarily to protect your entitlement to State Pension and certain benefits
  • are a new partner in a business partnership
  • have received any untaxed income over £2,500
  • receive Child Benefit payments and need to pay the High Income Child Benefit Charge because you or your partner earned more than £50,000

Criminals use emails, phone calls and texts to try to steal information and money from taxpayers. Before sharing personal or financial details, people should search ‘HMRC tax scams’ on GOV.UK to access a checklist and help decide if the contact received is a scam.

HMRC: A record 11.7 million tax returns received on time

A record 11.7 million customers submitted their tax returns on time, HM Revenue and Customs (HMRC) has revealed.

On 31 January, 861,085 customers filed online to meet the deadline, some with minutes to spare. There were 36,767 customers who filed in the last hour before the deadline, but the peak hour for filing on the day was 16:00 and 16:59, when 68,462 customers submitted their tax return.

More than 12 million customers were expected to file a Self Assessment tax return for the 2021 to 2022 tax year. HMRC is urging customers who missed the deadline to submit theirs as soon as possible or risk facing a penalty.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Thank you to the millions of customers and agents who got their tax returns in on time.

“Customers who have yet to file, and who are concerned that they will not be able to pay in full, may be able to spread the cost of what they owe with a payment plan.

“Search ‘pay my Self Assessment’ on GOV.UK to find out more.”

The Self Assessment payment deadline was also 31 January. If customers are yet to pay any outstanding tax, HMRC is urging them to do so as soon as possible. There are many ways for customers to pay, including online, using the HMRC app, by bank transfer, or at their bank. Payment options are listed at GOV.UK.

Customers can plan ahead for their 2022 to 2023 tax bill and set up a regular payment plan to help spread the cost. HMRC’s Budget Payment Plan enables customers who are up to date with previous payments to make regular weekly or monthly contributions towards their next tax bill.

A Budget Payment Plan is different from payments on account, which are usually due by midnight on 31 January and 31 July.

Customers need to be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone, including a tax agent, if they have one. HMRC scams advice is available on GOV.UK.

Self Assessment 2023 facts summary:

  • 12,060,872 Self Assessment returns due
  • 11,733,465 (97.3%) returns received by 31 January. This includes expected returns, unsolicited returns and late registrations
  • 11,399,465 expected returns received by 31 January (94.5% of returns expected)
  • an estimated 600,000 customers missed the deadline
  • 10,965,993 returns were filed online (96.2% of returns expected, following adjustments)
  • 385,296 paper tax returns were filed (3.4% of returns expected, following adjustments)

Unsolicited returns/late registrations are an estimate based on returns received by early January and previous filing behaviour.

Data is accurate at the time of publication but may be subject to future adjustments.

Anyone who has missed the 31 January deadline may face a penalty. The penalties for filing a tax return late 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.

One week left to file for fewer than 3.4 million Self Assessment customers

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.

A full range of payment options is listed on GOV.UK.

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.

Find out more about Self Assessment.

HMRC: Self-Assessment tax return

More than 10.7 million customers completed their 2019/20 tax return by 31 January 2021 and 795,300 were from Scotland, HM Revenue and Customs (HMRC) has revealed.

The deadline to complete the 2020/21 Self Assessment tax return is 31 January 2022. Customers can complete it at any time up to the deadline but HMRC is encouraging them to complete it early to allow for more time to pay their tax bill or set up a payment plan.

Customers must complete a Self Assessment return if they:

  • earned more than £2,500 from renting out property
  • received, or their partner has received, Child Benefit and either of them had an annual income of more than £50,000
  • received more than £2,500 in other untaxed income, for example from tips or commission
  • are a self-employed sole trader whose annual turnover is more than £1,000
  • are an employee claiming expenses in excess of £2,500
  • have an annual income of more than £100,000
  • have earned income from abroad that they need to pay tax on

The 2020/21 tax return covers earnings and payments during the pandemic. Customers will need to declare if they received any grants or payments from the COVID-19 support schemes up to 5 April 2021 on their Self Assessment, as these are taxable, including:

  • Self-Employment Income Support Scheme
  • Coronavirus Job Retention Scheme
  • other COVID-19 grants and support payments such as self-isolation payments, local authority grants and those for the Eat Out to Help Out scheme

The £500 one-off payment for working households receiving tax credits should not be reported in Self Assessment.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Customers can beat the rush and send us their tax returns now. They have until the 31 January deadline to pay, which means they have longer to set up a monthly payment plan if they need one.

“Visit GOV.UK and search ‘self assessment’ to find out more.”

Even if customers submit their completed tax return now, they do not have to pay any tax owed until 31 January 2022.

HMRC recognises that some customers may be worrying about paying their tax bill. Customers can access support to help pay any tax owed on GOV.UK.

Various payment options include:

  • paying through a customers’ tax code (PAYE customers only)
  • Payment on Account
  • setting up an online monthly payment plan (self-serve Time to Pay)
  • pay by debit or corporate credit card
  • pay at a bank or building society

Visit GOV.UK for a full list of payment options and the eligibility criteria. Customers should contact HMRC if they have concerns about paying their tax bill.

HMRC urges everyone to be alert if they are contacted out of the blue by someone asking for money or personal information.

Customers should always type in the full online address www.gov.uk/hmrc to get the correct link for filing their Self Assessment return online securely and free of charge.

HMRC sees high numbers of fraudsters emailing, calling or texting people claiming to be from the department.

If in doubt, HMRC advises not to reply directly to anything suspicious, but to contact them straight away and to search GOV.UK for ‘HMRC scams’.

Below is a breakdown of the estimated number of Self Assessment returns received from customers for 2019/20 filers in Scotland’s local authority areas:

Aberdeen City                       34,300
Aberdeenshire                       54,800
Angus                       18,000
Argyll and Bute                       17,400
Scottish Borders                       23,300
Clackmannanshire                         5,800
West Dunbartonshire                         7,600
Dumfries and Galloway                       26,000
Dundee City                       15,100
East Ayrshire                       14,300
East Dunbartonshire                       18,900
East Lothian                       18,500
East Renfrewshire                       17,500
City of Edinburgh                       97,600
Falkirk                       18,300
Fife                       47,900
Glasgow City                       68,000
Highland                       45,900
Inverclyde                         7,900
Midlothian                       12,700
Moray                       15,200
North Ayrshire                       15,200
North Lanarkshire                       34,300
Orkney Islands                         5,600
Perth and Kinross                       29,800
Renfrewshire                       19,500
Shetland Islands                         4,400
South Ayrshire                       16,500
South Lanarkshire                       42,000
Stirling                       17,200
West Lothian                       21,300
Na h-Eileanan Siar                         4,500
TOTAL                             795,300

More than 63,500 file Self Assessment on first day of tax year

HMRC urges others to follow

More than 63,500 customers filed their 2020/21 tax return online on 6 April, HM Revenue and Customs (HMRC) has revealed.

And with almost 950,000 online Self Assessment returns received so far this tax year, HMRC is urging others to do the same and file their tax returns early. Each year, thousands of people choose to file early, as soon as one tax year ends and the new one starts.

HMRC has seen a growing trend in early filers. In the last five tax years, the number of customers choosing to file on the first day of the new tax year has almost trebled from 22,885 in 2017 to 63,521 in 2021.

HMRC has today, published information to help customers file early – how to do it, what the benefits are, and what they need to get started.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “There are many advantages to completing your Self Assessment tax return sooner rather than later, not least that if you’re due tax refund you’ll get the money within a few days.  

“Our new online guide helps answer many of the questions customers have about Self Assessment. Go to GOV.UK and search ‘file your tax return early’.”

The Self Assessment guide will help customers navigate through the tax return process. Customers do not need to wait to submit their Self Assessment, they can file at a time that suits them and avoid any last-minute rush to meet the deadline on 31 January 2022.

It includes helpful information on:

·         How to get help with your tax return

·         What to do when declaring furlough payments, Self-employed Income Support Scheme grants or other COVID-19 support measures

·         What information you need before you can start your tax return

·         Help with paying your bill, and

·         What to do if you have paid too much tax

HMRC recognises that the pandemic has been a worrying time for Self Assessment customers and is doing all it can to support them accurately file their tax returns and meet their obligations. In addition to the factsheet, guidance and help sheets are available on GOV.UK.

Customers should also be aware of copycat HMRC websites and phishing scams. They should search ‘self assessment’ on GOV.UK to get the correct link for their Self Assessment tax return online securely and free of charge. They also need to be alert if someone calls, emails or texts claiming to be from HMRC, asking for bank or other personal details, threatening arrest or demanding a money transfer. It might be a scam. Anyone who is unsure can use the checklist on GOV.UK to help them decide if the contact they received is a scam.