If you have not filled out your self-assessment tax return or paid any tax due, you have just two days left until the deadline. And if you don’t act, you face a £100 fine.
The self-employed and anyone with untaxed income above £1,000 must file their online self-assessment tax return for the tax year ending 5 April 2024, by 11.59pm on 31 January.
You will also have to file one if you claim child benefit if you or your partnered earned more than £50,000, and if you earned more than £150,000 in taxable income.
HMRC said 3.4million taxpayers had still not filed their 2023/24 tax return with a week to go until the deadline.
Tax deadline: Millions of taxpayers still need to file their tax return before 31 January
More people than ever are having to complete a self-assessment tax return as frozen thresholds bring more of people’s savings interest, dividend income and capital gains into tax.
If your savings interest exceeds your personal savings allowance, which depends on your tax band, then you will have to pay your rate of tax on the sum above that, for example.
More people paid through PAYE may also have to file a tax return because their total taxable income has jumped above the £150,000 threshold at which all earners must submit a tax return.
The tax office has ramped up its warnings to the growing number of people who need to submit a tax return this month.
Taxpayers will have to pay an initial £100 penalty, and if it is still not paid after three months they will face additional penalties of £10 per day, up to a maximum of £900.
After six months, a further 5 per cent will be added to the amount due or £300, whichever is greater. And after 12 months, another 5 per cent or £300.
If you haven’t submitted a tax return before and need to do so this year, you would have needed to register for self-assessment last October. If you failed to do so, you could receive a ‘failure to notify’ penalty, which will be a percentage of the tax you owe.
If you submitted a tax return in the last financial year but no longer need to, you need to tell HMRC before the deadline.
If you were hoping to complete a paper tax return, you have missed the deadline of 31 October 2024.
You also need to make your first payment on account for the 2024/25 by 31 January or face paying a late payment charge of 7.25 per cent of the amount owed, which will accrue daily.
If you cannot afford to pay the tax due, you should contact HMRC as soon as possible and try to arrange a payment plan.
> Who needs to file a self-assessment tax return?
Beware HMRC scams ahead of the deadline
Taxpayers who are yet to complete their tax return should also be aware of scammers who use fake HMRC emails and phone calls in the run up to 31 January.
Adrianus Warmenhoven, a cybersecurity expert at NordVPN, says: ‘Be especially cautious of unsolicited phone calls, emails, or text messages claiming to be from HMRC.
‘Remember, they will never contact you via phone, email, or text to demand immediate payment, request sensitive information, or provide a refund link.
‘Any correspondence urging immediate action or promising to quickly resolve tax issues should immediately raise suspicion.
‘Cybercriminals frequently use phishing emails, fake websites, and fraudulent phone numbers to trick individuals into revealing confidential details.
‘Communications with poor grammar, generic greetings that do not use your name, or unusual formatting are clear red flags.’
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