Fri, 31 Jan 2025

Online self-assessment tax returns due by midnight

Millions still have to file their tax return by midnight of face a penalty, HMRC said.
HMRC has warned that millions of people who have not filed their online self-assessment tax returns by midnight may face a £100 fine and increasing penalties up to a maximum of £900. Around 3 million people are at risk of being penalized for missing the deadline, and HMRC is advising them to go online for help and advice, as well as using the app to pay any outstanding tax once their return is submitted. New rules mean that those selling around 30 items on online platforms such as eBay and Vinted will have their sales information shared with HMRC, which will be assessed against their tax returns. Those without a reasonable excuse for missing the deadline will receive an initial £100 fixed penalty, even if there is no tax to pay. If not paid after three months, additional daily penalties of £10 per day will apply up to a maximum of £900, with further penalties at six months and a year, including added interest. Around 8.6 million people have already declared their tax for the year 2023-2024, including small businesses and those with extra income outside of their jobs. Experts are warning that the UK tax system can be complex and daunting, but people should not "bury their head in the sand" due to fear. Reasonable excuses for missing the deadline include bereavement, being sick or dealing with a life-threatening illness. Other reasons may also be taken into account. HMRC is advising customers to include their bank details as part of their tax return to ensure swift repayment if any is due. They are also warning about the risk of falling victim to scams which can increase during tax deadlines. New rules mean that companies like eBay, Vinted, and others will now share sales data and personal information on sellers who sell over 30 items or made at least £1,700. Individuals need to complete a self-assessment if their self-employment income was more than £1,000, including profit from hobbies and side hustles. HMRC is urging people to submit their returns as soon as possible to avoid penalties and interest charges.
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