The deadline for filing your 2023 Self Assessment Tax Return online and to pay any tax you owe is 31 January 2024, which will soon be here!

Why not take advantage of the Christmas break to tackle your Tax Return and gather all the information together so that you have one less thing to worry about in the New Year?

You do not have to pay your tax bill when you file your Tax Return as the payment deadline is still 31 January, however submitting as soon as possible will confirm how much you owe and allow you to consider your payment options.

It may even be that you are due a repayment and the sooner you submit your Tax Return the sooner you will get your repayment.

The prospect of a large tax liability is a common reason people put off filing their Tax Return, but did you know that you may be able to set up a Self Assessment payment plan online if you:-

• have filed your latest Tax Return
• owe £30,000 or less
• are within 60 days of the payment deadline
• do not have any other payment plans or debts with HMRC

It is always better to take action and set up a plan with HMRC rather than do nothing and miss filing and payment deadlines as this can result in penalty and interest charges being incurred.

On the topic of penalties, if you fail to file your Tax Return on time, the penalties are as follows:-

• 1 day late                                              £100
• 3 months late                                     £10 daily penalty (up to max 90 days so £900)
• 6 months late                                    5% of tax due or £300, if greater
• 12 months late                                   Further 5% of tax due or £300, if greater

(In some cases, you may even have to pay up to 100% of the tax you owe)

So, if you are more than 12 months late in filing your Tax Return, you could incur late filing penalties of a minimum of £1,600!

Similarly, for late payment the penalties are as follows:-

• 30 days late                                        5% of tax you owe at that date
• 6 months late                                    Further 5% of tax you owe at that date
• 12 months late                                   Further 5% of tax you owe at that date

Take action sooner rather than later and get in touch with a member of the Tax Team if you require assistance with your Tax Return.