HM Revenue and Customs (HMRC) has issued an urgent warning to taxpayers with only a few weeks remaining until the Self-Assessment tax return deadline on January 31. The tax authority is urging millions of Britons to complete their returns promptly, as the process requires detailed information to ensure accuracy and avoid penalties.
Almost 5.5 million people have yet to file their online returns for the 2023-24 tax year, according to experts. Businesses and many people who have a side hustle have to complete their Self-Assessment form before the end of the month.
Alastair Douglas, CEO of TotallyMoney, said: “With more people making money from side hustles started during lockdown, and earning extra cash to help with the cost of living, some might not realise they need to file a return this month.”
The deadline applies to both submitting the tax return and making any payments owed, with HMRC set to charge interest at 7.25 per cent on late payments from February 1. Those earning £1,000 or more from online selling platforms such as Vinted, Ebay or Etsy are required to submit a tax return.
These platforms are legally obligated to share user information with HMRC if sellers have completed more than 30 transactions or earned above £1,700. “You should also double check what counts as an expense,” Douglas advised.
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Taxpayers are being called to take action before the end of the months
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Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners, warned: “Putting off personal finance decisions is something many of us do but leaving your Self-Assessment tax return until the last minute is risky because the document requires so much attention.”
Taxpayers are encouraged to include all eligible expenses on their returns to reduce their overall bill, though evidence must be available if inspected. HMRC can be contacted on 0303 1234 500 for those needing assistance with their returns.
The tax office’s phone lines are open from 8am to 8pm on weekdays and 8am to 4pm on Saturdays, with no service on Sundays. Experts recommend calling early in the morning to avoid peak times during lunch hours and evenings.
Douglas emphasised the importance of prompt submission: “Once you’ve completed your form, and you’ve double checked all the information is correct, then submit your return as soon as possible.”
Side hustlers need to declare their income to the tax man
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“That way you can avoid the rush and any last minute issues,” he added. Claimable expenses include charitable donations, business-related travel costs, and work uniform expenses.
Those working from home may also be eligible to claim a portion of their household utility costs. All expense claims must be supported by evidence in case of HMRC inspection.
Missing the January 31 deadline will result in immediate penalties, with further charges accumulating for delayed submissions. Late filers face an instant fine, with additional penalties applied the longer the return remains unsubmitted.
“Leave it too late, however, and you risk missing the deadline for online submission at midnight on January 31, 2024, and incurring an instant fine with additional penalties the later the return is filed or any tax owed is paid,” warned Haine.
Claire Trott, Divisional Director at St. James’s Place, noted: “Completing a tax return tends to be a dreaded task, leading many to put it off until the last minute, and in doing so risk leaving out vital information that could result in paying more tax than necessary.”
With millions of taxpayers yet to file, experts stress the importance of avoiding last-minute submissions. Trott emphasised the importance of including often-forgotten details that could lead to tax relief.
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HMRC is reminding Britons about an important deadline
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“There are a number of details such as gift aid payments, and necessary work expenses that can be easy to forget about when filing a return but can amount to significant tax relief,” she explained.
The St James’s Place director urged taxpayers to be thorough in their submissions. “It’s important that taxpayers take time to include all relevant information to ensure they receive the full tax relief they’re entitled to,” she added.
Experts recommend reviewing all charitable donations and work-related expenses carefully before submission.Taking time to complete returns accurately could result in substantial savings through available tax relief opportunities.
With the deadline approaching, taxpayers are advised to gather all necessary documentation and review their submissions thoroughly to avoid missing out on potential relief.
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