Don’t miss the tax deadline! Prepare your records now for a hassle-free submission.

8th December 2023

With Christmas fast approaching the last thing you want to be worrying about is meeting the January 31^st deadline for your online tax return when instead you should be enjoying the festivities!

After the large expense at Christmas no one wants to be faced with late filing and late payment interest and/or penalties in the New Year.

What are the current penalties?

Currently, the following late payment penalties apply;

Time Frame	Penalty
30 days late	5% of the outstanding tax liability
6 months late	An additional 5% of the outstanding tax liability
12 months late	An additional 5% of the outstanding tax liability

And the following late submission penalties apply;

Timeframe	Penalty
1 day late	£100
3 months late	£10/day for a maximum of 90 days
6 months late	The greater of 5% outstanding tax and £300
12 months late	The greater of 5% outstanding tax and £300

For further details head to HMRC

How to pay your tax bill

HMRC are reducing the number of statements they send out which indicate how much tax is outstanding and how to pay.  As a result more clients are contacting us to request information on how to do so.  There are several ways to pay your self-assessment bill.  Whichever method you choose to pay, you must be sure to quote your unique tax payer reference (UTR), this will ensure it is allocated to your HMRC account.

What tax is due by 31 January?

Both your balancing payment for 2022/23 is due alongside your first payment on account towards your 2023/24 tax liability (provided you are required to make payments on account).  If you believe your income will be significantly reduced for 2023/24 there may be scope to reduce your payments on account.  However, if these have been underestimated once the 2023/24 tax return is complete, late payment interest will be due on the balance.  Please feel free to contact us if you have already completed your return but believe there may be scope to reduce the payments on account.

Who needs to complete a tax return?

If you are unsure as to whether you need to complete a tax return for 2022/23, below is a list of those required to complete one for the period 06/04/2022-05/04/2023;

• If you were self-employed and earnt more than £1,000
• You were a partner is a partnership
• Your taxable income was over £100,000
• You were subject to high income child benefit charge
• You have untaxed income from the following;
  • Covid-19 grant/support payments
  • Land and property income
  • Tips and commission
  • Savings, investment or dividend income
  • Foreign income

This list is not extensive and if you are unsure as to whether you need to complete a tax return for 2022/23 please do contact us at Thompson Jenner where we can assist to ensure you meet the midnight deadline on 31 January 2024.