HMRC may issue £100 fines if people don't act within days
HM Revenue and Customs (HMRC) may issue fines to certain people who don't act within the coming days. Millions of people are due to file a self-assessment tax return for the financial year 2023/24.
These tax returns must be filed by January 31, and anyone who doesn't do so by this date risks being hit with a £100 penalty, even if they don't owe any tax. If you need to register for a self-assessment tax return, you'll need to do this by Saturday, October 5.
People may need to register for a number of reasons, including anyone who is newly self-employed and has earned more than £1,000 in gross income. You may also wish to register if you have earned below £1,000 and wish to pay Class 2 National Insurance Contributions voluntarily to protect your entitlement to State Pension and certain benefits.
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Anyone who is a new partner in a business partnership, has received any untaxed income over £2,500, and/or receives Child Benefit payments and need to pay the High Income Child Benefit Charge because they or their partner earned more than £50,000, will also need to register.
If you miss the October 5 deadline, there is a possibility you may eventually be charged a penalty for failing to notify HMRC that you owe tax, according to the Low Incomes Tax Reform Group. This is called a "failure to notify" penalty and is calculated as a percentage of the tax that is owed.
If you notify HMRC late, you can usually avoid a failure to notify penalty if you can both file your 2023/24 tax return online and pay any income tax owed for the 2023/24 tax year by January 31. However, if you do not register for self-assessment, you're more likely to forget to file the return altogether - leading to a £100 fine, and potentially other penalties on top.
HMRC said it "urges customers to file their return early to provide peace of mind and to also allow time to consider opportunities to spread the cost of their tax bill, claim refunds earlier and avoid costly errors caused by rushing."