Self-assessment tax return reminder

With the self-assessment deadline date fast approaching, there are still around 5,542,000 taxpayers who need to complete their tax returns before the 31 January 2019 deadline.

As of 31^st December 2018, about 52% of taxpayers have already filed their returns, with more than five million having completed them online (88% of the total returns filed).

Financial Secretary to the Treasury, Mel Stride, said, “It is encouraging that around 52% of taxpayers have already completed their Self Assessment tax returns. With less than one month to go before the deadline, there are still many people that need to act now.

“HMRC is encouraging all Self Assessment filers to complete their returns by 31 January and is offering support every step of the way.”

Angela MacDonald, HMRC’s Director General for Customer Services, added, “The Self Assessment deadline on 31 January is fast approaching, but there is still time for customers to file their tax returns online and on time to avoid any unnecessary penalties.

“If you are completing Self Assessment for the first time or are yet to start your 2017 to 2018 tax return, there is a wide range of support and guidance available on GOV.UK to help at every stage of the tax return process.”

People need to complete a tax return if they:

• Earned more than £2,500 from renting out property
• Or their partner 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 self-employed sole traders
• Are employees claiming expenses in excess of £2,500
• Have an annual income over £100,000
• Earned income from abroad that they need to pay tax on

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

To find out more about contracting please contact Sophie on 01442 795 100 or email sophie.lewis@dolanaccountancy.com