Month: October 2024

A final reminder that the 2023-24 tax return deadline for taxpayers who continue to submit paper self-assessment returns is 31 October 2024. Late submission of a self-assessment return will incur a £100 late filing penalty. The penalty usually applies even if there is no liability or if any tax due is paid in full by 31 January 2025.

We would recommend that anyone still submitting paper tax returns consider the benefits of submitting the returns electronically and benefit from an additional three months (until 31 January 2025) in which to submit a 2023-24 return.

Taxpayers with certain underpayments in the 2023-24 tax year can elect to have this amount collected via their tax code (in 2025-26), provided they are in employment or in receipt of a UK-based pension. The coding applies to certain debts and the amount of debt that can be coded out ranges from £3,000 to £17,000 based on a graduated scale. The maximum coding out allowance only applies to taxpayers with earnings exceeding £90,000.

Daily penalties of £10 per day will also take effect if the tax return is still outstanding three months after the filing date up to a maximum of £900. If the return still remains outstanding further higher penalties will be charged from six months and twelve months after the formal payment deadline.

If you have submitted a self-assessment return and later realise you need to make changes, there are specific rules to follow. This situation might arise if, for instance, you entered a number incorrectly or omitted certain information from your self-assessment return.

If you filed your return online, you could amend your return online as follows:

1. Sign in to your personal tax account using your Government Gateway user ID and password.
2. From ‘Your tax account’, choose ’Self-Assessment account’ (if you do not see this, skip this step).
3. Choose ‘More Self-Assessment details’.
4. Choose ‘At a glance’ from the left-hand menu.
5. Choose ‘Tax Return options’.
6. Choose the tax year for the year you want to amend.
7. Access the tax return, make the corrections, and file it again.

You must wait 3 days (72 hours) after filing before updating your return. If you opted to file your return on paper, you would need to download a new return and fill in the pages that you wish to change and write ‘amendment’ on each page. You must also include your name and Unique Taxpayer Reference on each page and then send the corrected pages to the address where you sent your original return.

If you used commercial software to submit your self-assessment return, then you should contact your software provider in the first instance. If your software provider cannot help, contact HMRC.

The deadline for making changes for the 2022-23 tax year using the methods mentioned above is 31 January 2025. If you miss this deadline, you will need to write to HMRC. For example, if you discover an error in your 2021-22 return after 31 January 2024. Your letter should specify the tax year you are correcting, explain why you believe you have overpaid or underpaid tax, and state the amount involved. You can request a refund up to four years after the end of the relevant tax year.

There are a little over three months remaining to file your self-assessment tax return online for 2023-24. The deadline is 31 January 2025. As this date approaches, an increasing number of individuals are reaching out to HMRC’s helpline for help. 

To help ease the demand, HMRC has shared the top five reasons people are calling the self-assessment helpline and is encouraging everyone to use the online resources for quicker access to information.

The 5 most common reasons for calling the helpline are:

1. I no longer need to complete a self-assessment tax return.
2. I need to register for self-assessment.
3. Can you tell me if I still have to complete a tax return?
4. What’s happening with my self-assessment registration?
5. What’s happening with my self-assessment repayment?

Taxpayers may need to complete a tax return, even if they pay taxes through PAYE, for example, if they:

• are self-employed and have earned gross income over £1,000;
• are self-employed and earned up to £1,000 and wish to pay Class 2 NICs voluntarily to protect their entitlement to State Pension and certain benefits;
• are a partner in a business partnership;
• had a total taxable income of more than £150,000;
• have received any untaxed income including pension income over £2,500;
• received income over £1,000 from trading or providing services online;
• have to pay the High Income Child Benefit charge;
• received interest from banks and building societies or investments (more than £10,000); or
• received rental or letting income from UK land and property.

Over 12 million taxpayers need to complete their self-assessment for the 2023-24 tax year and pay any taxes due by the 31 January 2025.