Tag: tax returns

Early Birds! Over 295,000 file returns in the first week of new tax year

Almost 300,000 Self Assessment customers filed their tax return in the first week of the new tax year, almost 10 months ahead of the deadline, HM Revenue and Customs (HMRC) has revealed. 

Customers can file their Self Assessment returns for the 2023 to 2024 tax year between 6 April 2024 and 31 January 2025.  

Almost 70,000 people filed their return on the opening day this year (6 April) and HMRC is encouraging people to do it early and not to leave it until January. 

Visit GOV.UK to find out more about Self Assessment and how to file a tax return.  

By filing tax returns early, people can take their time to complete their returns – making sure the information is accurate and avoiding the stress of last-minute filing.  

It can also help with budgeting and helping spread the cost of their tax bill. Customers can set up a budget payment plan to make weekly or monthly direct debit payments towards their next Self Assessment tax bill. 

Refunds of overpaid tax will be paid as soon as the return has been processed. Customers can also check if they are due a refund in the HMRC app.  

In recent years, HMRC has seen more and more customers file their tax returns early. Last year, more than 246,000 people submitted their Self Assessment between 6 and 12 April 2023. 

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Filing your Self Assessment early means people can spend more time growing their business and doing the things they love, rather than worrying about their tax return.  

“You too can join the thousands of customers who have already done their tax return for the 2023-24 tax year by searching ‘Self Assessment’ on GOV.UK and get started today.” 

HMRC has updated guidance on filing tax returns early and help around paying tax bills on GOV.UK.  

Anyone who is new to Self Assessment and thinks they might need to complete a tax return for the 2023 to 2024 tax year can use the Self Assessment online tool to check whether they need to register for Self Assessment and submit a return. 

People may need to complete a tax return for the 2023 to 2024 tax year and pay any tax owed if: 

·         they are a self-employed individual with an income over £1,000 

·         they have received any untaxed income over £2,500 

·         they are renting out one or more properties 

·         they claim Child Benefit and they or their partner have an income above £50,000   

·         they are a partner in a partnership 

·         their taxable income earned from savings and investments is more than the £10,000 personal savings allowance 

·         their taxable income earned from dividends is more than £10,000 

·         they have paid Capital Gains Tax on assets that were sold for a profit above the Capital Gains threshold 

A full list of who needs to complete a tax return is available on GOV.UK. 

Pensioners are required to pay Income Tax on any taxable income, including their pension income, above their Personal Allowance threshold. There are different ways to pay any tax owed, depending on the individual’s circumstances, including: 

·         if they already complete a Self Assessment tax return, they will need to report and pay via this route 

·         if they have a PAYE tax code, HMRC will automatically collect any tax through their tax code 

Alternatively, if a pensioner does not already pay tax via Self Assessment or PAYE, HMRC will send them a Simple Assessment summary.

The Simple Assessment will tell them how much Income Tax they need to pay and the deadline – usually by 31 January following the end of the tax year. HMRC produces the Simple Assessment from the information it already holds so people do not need to do anything – there is no form to complete. More information about Simple Assessment is available on GOV.UK. 

It is important that customers let HMRC know if there are any changes in details or circumstances such as a new address or name, or if they are no longer self-employed or their business has closed.

They should not assume someone else will update HMRC on their behalf.

If customers no longer need to do Self Assessment, they will need to tell HMRC. There are videos on YouTube that explains how to stop Self Assessment. 

Criminals use emails, phone calls and texts to try to steal information and money from taxpayers. Before sharing their personal or financial details, people should search ‘HMRC phishing and scams’ on GOV.UK to check the sender or caller is genuine. 

Customers should never share their HMRC sign-in details. Someone could use them to steal from them or claim benefits or a refund in their name. 

HMRC: A record 11.5 million tax returns filed by the deadline

A record-breaking 11.5 million taxpayers submitted their Self Assessment tax returns for the 2022 to 2023 tax year by midnight on 31 January, HM Revenue and Customs (HMRC) reveals.

More than 12.1 million taxpayers were expected to file a tax return and pay any tax owed. Of those that met their obligations by the deadline, 778,068 beat the clock to complete it on 31 January, including:

·         61,549 customers who filed between 16:00 and 16:59 – the peak hour for filing

·         32,958 customers who filed between 23:00 and 23:59

HMRC is urging anyone who missed the deadline to submit their tax return now. There is an interactive tool on GOV.UK to help customers with their return. Late filing and late payment penalties are charged for failure to meet the deadline.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Thank you to the millions of Self Assessment customers and agents who met the deadline.

“Anyone who has yet to file and is concerned that they cannot pay in full may be able to spread the cost of what they owe with a payment plan. Search ‘pay your Self Assessment’ on GOV.UK to find out more.” 

The Self Assessment payment deadline was also 31 January, and anyone with outstanding tax to pay should do so as soon as possible.

There are many ways to pay, including online, using the HMRC app, by bank transfer, or setting up a Time to Pay payment plan. There is a video on YouTube to help customers set up an online payment plan.

A full list of payment options can be found on GOV.UK. There is also a video on YouTube that explains a customer’s Self Assessment tax bill and the different ways to pay.

Customers can plan ahead for their 2023 to 2024 tax bill and set up a regular payment plan to help spread the cost. HMRC’s Budget Payment Plan enables those 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. 

Taxpayers who file or pay late but have a reasonable excuse can appeal penalties on GOV.UK. HMRC has published interactive guidance to explain the process and signpost them to the correct course of action.

People should 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.

HMRC: Number of Self Assessment customers who file early doubles in 5 years

The number of Self Assessment customers who choose to file their tax return on the first day of the tax year (6 April 2023) has more than doubled since 2018, HM Revenue and Customs (HMRC) has revealed.

More than 77,500 customers submitted their tax return for the 2022 to 2023 tax year on 6 April 2023, compared to almost 37,000 customers on 6 April 2018.

The deadline to file tax returns for the 2022 to 2023 tax year is 31 January 2024 and customers have been able to submit theirs since the start of the new tax year.

By completing their Self Assessment early, customers have avoided the stress of last-minute filing – something which encouraged more than 860,000 customers file their tax return for the 2021 to 2022 tax year on 31 January 2023.

Visit GOV.UK to find out more about Self Assessment and how to file a tax return for the 2022 to 2023 tax year.

https://youtu.be/TnRQs2kvchA

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Filing your Self Assessment early means you can spend more time building your business or doing the things that you enjoy and less time worrying about completing your tax return. To find out how you can start yours and get help with budget planning, search ‘Self Assessment’ on GOV.UK.”

Customers can find out sooner if they are owed money. Once they have submitted their tax return for the 2022 to 2023 tax year, HMRC will let customers know as soon as the return has been processed and arrange for any overpayment to be refunded. Customers can also check if they are due a refund in the HMRC app once they have filed their return.

Customers who file early also benefit from knowing how much tax they owe and can set up a budget plan to help spread the cost and manage their payments. The Budget Payment Plan allows customers to choose how much and how often they want to pay – putting them in control of managing their bill.

Taxpayers can check if they need to complete a tax return by using the free online tool on GOV.UK. They may need to do Self Assessment if, for example, they:

·         are newly self-employed and have earned over £1,000

·         are a new partner in a business partnership

·         have received any untaxed income

·         are claiming Child Benefit and you or your partner have an income above £50,000

HMRC has updated guidance on filing tax returns early and help around paying tax bills on GOV.UK.

It is important that customers let HMRC know if there are any changes in details or circumstances such as a new address or name, or if they are no longer self-employed or their business has closed down. They should not assume someone else will update HMRC on their behalf.

If customers no longer need to do Self Assessment, they will need to tell HMRC. Find out more information on YouTube.

HMRC is reminding customers to protect their personal information and always be on their guard against tax scams. If a customer is contacted by someone saying they are from HMRC, they should never let themselves be rushed, especially if they are urged to transfer money or share personal information. Customers should not share their HMRC login details with anyone, including their tax agent.

Tax scams come in many forms – some offer a rebate while others threaten arrest for tax evasion. HMRC advises customers to take their time and if they’re unsure, check HMRC scams advice on GOV.UK.

From pensioners to teenagers, HMRC reveals who files a tax return

HMRC has revealed that more pensioners filed a tax return for the 2020 to 2021 tax year compared to young people.

Overall, those aged 65 and over accounted for 16% of individuals who submitted a tax return, whereas 16 to 24 year olds made up 2.7% of total filers.

The new data is part of analysis by HMRC into the demographic data of the Self Assessment population.

The findings also show:

  • people aged 45 to 54 were the largest group of filers, accounting for 24% of all tax returns submitted
  • more than 294,000 16 to 24 year olds filed a return, making up 2.7% of total filers
  • 62% of those who submitted a return last year were men, compared to 38% who were women

The data also showed that almost 146,000 people submitted their tax return at the earliest opportunity between 6 and 11 April 2021.

More than 12 million people are expected to file a Self Assessment tax return for the 2021 to 2022 tax year. Anyone yet to submit theirs has until 31 January to complete it, pay any tax owed or set up a payment plan, or risk having to pay a penalty.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Time is running out for anyone who has yet to start their tax return – there is a wide range of guidance and webinars available online for those who need a helping hand. Just search ‘Self Assessment’ on GOV.UK to make a start.“

Payments are also due on 31 January and customers still have time to decide which payment option is best for them. For customers who are due a refund, they should include their bank account details in their tax return so that if HMRC needs to repay them, it can be done quickly and securely.

Customers can now use the free and secure HMRC app to make Self Assessment payments, as well as accessing information which they need to complete their tax return, including their Unique Taxpayer Reference (UTR), National Insurance number and employment history.

Those who are unable to pay their tax bill in full can access support and advice on GOV.UK. HMRC may be able to help by arranging an affordable payment plan, known as Time to Pay. Customers should try to do this online; go to GOV.UK for more information. Alternatively, they can contact the helpline.

HMRC has a wide range of resources to help customers complete their tax return, including guidance, webinars and YouTube videos.

Customers need to be aware of the risk of scams as criminals use Self Assessment as an opportunity to commit fraud. Customers should check HMRC’s scams advice on GOV.UK.

It’s a cracker! 3,275 file tax returns on Christmas Day

As millions of people enjoyed Christmas festivities this year, for 3,275 people Christmas Day was the perfect time to file their Self Assessment tax return, HM Revenue and Customs (HMRC) has revealed. 

A total of 22,060 customers went online to submit their form for the 2021 to 2022 tax year between 24 and 26 December, and 141 opted to file between 23:00 and 23:59 on Christmas eve, meaning they could enjoy celebrations knowing their tax return was complete.

The breakdown of figures for those who opted to file during the festive period are:

  • Christmas Eve: 8,474 tax returns were filed. The peak time for filing was between 11:00 and 11:59, when 888 returns were received. 
  • Christmas Day: 3,275 tax returns were filed. The peak time for filing was between 12:00 and 12:59, when 319 returns were received. 
  • Boxing Day: 10,311 tax returns were filed. The peak time for filing was between 12:00 and 12:59, when 953 returns were received. 

The deadline to file and pay any tax owed for the 2021 to 2022 tax year is 31 January 2023, and HMRC is urging customers to submit their tax return on time or they may face a penalty.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We are grateful to those customers who have already filed their tax returns. For anyone who is yet to make a start, help is available on GOV.UK, just search ‘Self Assessment’ to find out more.”

Once customers complete their tax return, if they owe tax, they can find out about the different ways to pay including via the HMRC app at GOV.UK.

Those who are unable to pay their tax bill in full can access support and advice on GOV.UK. HMRC may be able to help by arranging an affordable payment plan, known as Time to Pay. Customers should try to do this online; go to GOV.UK for more information. Alternatively, they can contact the helpline. 

HMRC has a wide range of resources to help customers complete their tax return, including guidance, webinars and YouTube videos.

People need to be aware of the risk of falling victim to scams and must never share their login details which can be used to make fraudulent claims. Check HMRC scams advice on GOV.UK.

Find out more about Self Assessment.

HMRC: 656,000 people in Scotland filed their tax returns on time

HM Revenue and Customs (HMRC) is reminding customers in Scotland to get ready to meet the Self Assessment deadline, after more than 656,000 filed their tax returns on time. 

In Scotland, 656,547 customers filed their returns for the tax year 2020 to 2021 by 31 January 2022.

The deadline to submit a tax return for the 2021 to 2022 tax year and pay any tax due is 31 January 2023. Customers do not need to wait until the new year to begin their tax return. Starting early means more time to access guidance and webinars to help complete the return and find out what tax they owe, so they can budget.  

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “There is still time to complete your tax return ahead of the deadline and there are videos and guidance available online to support you with your Self Assessment. Search ‘help with Self Assessment’ on GOV.UK to find out more.”

HMRC has produced guidance notes and YouTube videos to help customers understand how to complete their return quickly and easily. 

The free and secure HMRC app can be used to make Self Assessment payments. Alternative payment options include:

  • paying through PAYE tax code (subject to eligibility)  
  • paying via online banking

Those who are unable to pay their tax bill in full can access support and advice on GOV.UK. HMRC may be able to help by arranging an affordable payment plan, known as Time to Pay. Customers should try to do this online; go to GOV.UK for more information. Alternatively, they can contact the helpline.

Customers who are unsure if they need to file a tax return can visit GOV.UK to check if they need to send a Self Assessment tax return.

People completing a tax return are at increased risk of falling victim to scams. Check HMRC scams advice on GOV.UK.

HMRC: Self Assessment – don’t forget to declare COVID-19 payments

HM Revenue and Customs (HMRC) is reminding Self Assessment customers that they must declare COVID-19 payments in their tax return for the 2021 to 2022 tax year.

More than 2.9 million people claimed at least one Self-Employment Income Support Scheme (SEISS) payment up to 5 April 2022. These grants are taxable and should be declared on tax returns for the 2021 to 2022 tax year before the deadline on 31 January 2023.

The SEISS application and payment windows during the 2021 to 2022 tax year were:

·         SEISS 4: 22 April 2021 to 1 June 2021

·         SEISS 5: 29 July 2021 to 30 September 2021

SEISS is not the only COVID-19 support scheme that should be declared on tax returns. If customers received other support payments during the 2021 to 2022 tax year, they may need to report this on their tax return if they are:

  • self-employed
  • in a partnership
  • a business

Customers can check which COVID-19 grants or payments they need to report to HMRC on GOV.UK. This applies to payments received during the 2021 to 2022 tax year.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We want to help customers get their tax returns right, first time. We have videos and guidance available online to support you with your Self Assessment. Search ‘help with Self Assessment’ on GOV.UK to find out more.”

Help and support is available on GOV.UK for those completing their Self Assessment tax returns. There is also a series of videos on YouTube.

The free and secure HMRC app can be used to make Self Assessment payments. Alternative payment options include:

·         paying through PAYE tax code (subject to eligibility) 

·         paying via online banking

Those who are unable to pay their tax bill in full can access the support and advice that’s available on GOV.UK. HMRC may be able to help by arranging an affordable payment plan, known as a Time to pay. Customers should try to do this online, go to GOV.UK for more information. Alternatively, they can contact the helpline.

All Self Assessment customers need to be alert to the risk of criminals emailing, calling or texting claiming to be from HMRC. Scams come in many forms – some threaten immediate arrest for tax evasion, others offer a tax rebate.

Contacts like these should set alarm bells ringing and HMRC advises customers to take their time and check scams advice by searching for ‘HMRC scams’ on GOV.UK. HMRC also urges customers never to share their HMRC login details. Someone using them could steal from the customer or make a fraudulent claim in their name.

Less than one month left for VAT businesses to be ready for Making Tax Digital filing

HM Revenue and Customs (HMRC) is reminding businesses that from Tuesday 1 November, they will no longer be able to use their existing Value Added Tax (VAT) online account to submit VAT returns.  

By law, all VAT-registered businesses must now sign up to Making Tax Digital (MTD) and use compatible software to keep their VAT records and file their returns.  

MTD’s aim is to help businesses get their tax right first time by reducing errors, making it easier for them to manage their tax affairs by going digital, and consequently helping them to grow. 

More than 1.8 million businesses are already benefitting from the service, and more than 19 million returns have been successfully submitted through MTD-compatible software so far.  

In less than one month, businesses who file their VAT returns on a quarterly and monthly basis will no longer be able to submit them using their existing VAT online account, unless HMRC has agreed they are exempt from MTD.  

If businesses do not file their VAT returns through MTD-compatible software, they may have to pay a penalty. Even if a business currently keeps digital records, they must check their software is MTD compatible and sign up for MTD before filing their next return. 

https://youtu.be/OyWJz0fSDE4

Richard Fuller MP, Economic Secretary to the Treasury, said: “Making Tax Digital can help businesses get their tax right first time, which cuts the administration burden and frees up time for them to get on with what matters most to them – growing their business.

“I encourage any VAT-registered businesses still to register for Making Tax Digital to get online and sign up.”

If a business hasn’t already signed up to MTD or started using compatible software, they must follow these steps now: 

Step 1. Choose MTD-compatible software – a list of software, including free and low-cost options, can be found on GOV.UK. 

Step 2. Check the permissions in the software – once a business has allowed it to work with MTD, they can file VAT returns easily. Go to GOV.UK to learn how to do this and search ‘manage permissions for tax software’. 

Step 3. Keep digital records for current and future VAT returns – a business can find out what records need to be kept on GOV.UK. 

Step 4. Sign up for MTD and file future VAT returns using MTD-compatible software – to find out how to do this, go to GOV.UK and search ‘record VAT’. 

If a business is already exempt from filing VAT returns online or if their business is subject to an insolvency procedure, they will automatically be exempt.

A business can check if they can apply for an exemption from MTD on GOV‌‌‌.UK if it is not reasonable or practical for them to use computers, software or the internet. HMRC will consider each application on a case-by-case basis.    

If a business is new and is not yet registered for VAT, they will automatically be signed up for MTD while registering for VAT through HMRC’s new VAT Registration Service (VRS). 

Registering via this online service not only means a faster VAT registration and improved security, but also helps new businesses to be fully compliant with MTD requirements from Day 1 – although they will still need to get the right software to submit their VAT returns.  

A range of accessible help is available online through GOV.UK, webinars and videos as well as through HMRC’s Extra Support Service. 

Thousands of people have also benefitted from HMRC’s live webinars, which offer support on filing digitally and explain how it can help businesses. HMRC is continuing to communicate directly with businesses and agents to support them as they transition to MTD for VAT. 

HMRC: Almost 66,500 file their Self Assessment on 6 April

Nearly 66,500 customers filed their 2021 to 2022 tax return on the first day of the new tax year – 6 April 2022 – HM Revenue and Customs (HMRC) has confirmed.

In recent years, there has been an increasing number of ‘early-bird’ customers filing their completed Self Assessment tax returns at the start of the new tax year – almost 30,000 more customers filed their returns on 6 April this year, compared to 2018 – and HMRC is encouraging others to change their filing habits and do it as soon as they can.

Customers have been able to file their 2021 to 2022 Self Assessment tax return since 6 April. And while many wait until nearer the annual filing deadline on 31 January, for some it is an opportunity to beat the last-minute rush and get it done as soon as they can, while they have the relevant information to hand.

Customers can file their tax return online. It is the quickest way to complete a Self Assessment return and it does not need to be finished in one go, as customers can access their return online anytime and save their progress until it is completed and ready to submit.

Customers who file their tax return early could benefit from:

·         receiving a tax refund on any overpaid tax from the 2021 to 2022 tax year sooner. Once a customer has filed their tax return, they can check if a repayment is due via their Personal Tax Account

·         managing their tax bill via direct debit. Customers can use the Budget Payment Plan service to set up weekly or monthly direct debit payments to spread the cost of any tax owed. The Self Assessment tax payment deadline for balancing payments remains unchanged – 31 January 2023

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “You don’t need to wait for the January rush to send us your tax return. More and more people are getting theirs out of the way early – search ‘Self Assessment’ on GOV.UK to get started.”

HMRC has updated the Self Assessment guide to help customers navigate through the tax return process. It includes helpful information on:

·         how to get help with your tax return

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

·         what information you need before you can start completing your tax return

·         help with paying your Self Assessment tax bill

·         what to do if you have overpaid tax and are due a refund

Earnings and payments received during the pandemic will need to be reported on the tax return meaning customers must declare any grants or payments from the COVID-19 support schemes received between 6 April 2021 and  5 April 2022 as these are taxable, including: 

  • Self-Employment Income Support Scheme 
  • Coronavirus Job Retention Scheme 
  • other COVID-19 grants and support payments
  • any coronavirus payments incorrectly claimed

The Self Assessment deadline to file a return and pay any tax owed for the 2021 to 2022 tax year is 31 January 2023.

HMRC: More than 10.2 million filed their Self Assessment by 31 January

More than 10.2 million customers filed their 2020 to 2021 tax returns by the 31 January 2022 deadline, HM Revenue and Customs (HMRC) has revealed.

More than 630,000 customers filed on deadline day and the peak hour for filing was 16:00 to 16:59 when 52,475 completed their Self Assessment. There were 20,947 customers who completed their tax return between 23:00 and 23:59.

More than 12.2 million customers were expected to file a Self Assessment tax return this year. The remaining 2.3 million customers expected to file by 31 January now have until 28 February 2022 to submit their late 2020 to 2021 tax return and avoid a late filing penalty.

For any Self Assessment customer who is yet to pay their tax bill or set up a payment plan, interest will be applied to outstanding balances from 1 February. Customers have until 1 April to pay their tax in full, or set up a time to pay arrangement, to avoid a late payment penalty.

Those who are not yet able to file their tax return should pay an estimated amount as soon as possible, which will minimise any interest. Self-employed people can use the calculator on GOV.UK to help estimate their tax bill.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “I’d like to thank the millions of customers and agents who sent us their tax return and paid in time for this week’s deadline.

“We’re waiving penalties this year, to give those who missed the deadline an extra month. And customers can set up a monthly payment plan online if they’re worried about paying their tax bill. Search ‘Self Assessment’ on GOV.UK to find out more.”

The existing Time to Pay service allows customers, who are unable to pay their bill in full, to spread their tax payments into manageable monthly instalments. Self Assessment customers with up to £30,000 of tax debt can do this online once they have filed their return.    

If customers owe more than £30,000, or need longer to pay, they should call the Self Assessment Payment Helpline on 0300 200 3822.

A full list of the payment methods customers can use to pay their Self Assessment tax bill is available on GOV.UK.

The 2020 to 2021 tax return covers earnings and payments during the pandemic. Taxpayers 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.

It is important that customers check and make any changes to their tax return to make sure any SEISS or other COVID-19 support payments have been reported correctly in their Self Assessment.

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