Over five million yet to file and pay their tax return

With the deadline date looming to complete self-assessment, there are still around 5.4 million people who have yet to do theirs.

Over 40,000 people chose to file theirs over the festive period, with 4,400 completing theirs on Christmas Day – as many as 23,731 filed theirs on Christmas Eve and 11,932 did so on Boxing Day.

Interestingly, 38,000 people filed on New Year’s Eve with 310 choosing between 23:00 and 23:59 to complete and more than 24,800 did theirs on the 1^st of January.

HMRC is reminding those who still need to pay about the penalties for late tax returns:

• 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, which is 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.

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.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.