Around 5,542,000 taxpayers have less than a month to complete their self-assessment tax returns before 31 January deadline.
In total, more than 11.5 million 2017/18 tax returns are due. As of 31 December 2018, approximately 52% of taxpayers have already filed their returns, with five million having completed their returns 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, said: “If you are completing self-assessment for the first time or are yet to start your 2017/18 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 must complete a tax return if they:
or their partner received child benefit and either of them had an annual income of more than earned £2500 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 £2500 in other untaxed income, for example from tips or commission
are self-employed sole traders
are limited company directors
are employees claiming expenses in excess of £2500
have an annual income over £100,000
earned income from abroad that they need to pay tax on.
If customers completed a self-assessment tax return last year but did not have any tax to pay, they still need to complete a 2017/18 tax return, unless HMRC has written to them to say it is not required.
The penalties for late tax returns are:
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 three months, additional daily penalties of £10 per day, up to a maximum of £900
after six 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.
There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, six months and 12 months.
This article first appeared on www.accountancydaily.co.
Last reviewed 7 January 2019