The self-assessment tax return deadline for the 2023-24 tax year is just around the corner. This applies to income earned between 6 April 2023 and 5 April 2024. With the deadline set for 31 January 2025, it’s essential to ensure your tax affairs are in order. Whether you’re self-employed, earning additional income, or required to file for other reasons, now is the time to act to avoid penalties and unnecessary stress.

What is the self-assessment deadline?

The self-assessment deadline is 31 January 2025 for online submissions. This is also the date by which any tax owed must be paid. If you submitted a paper tax return, the deadline was 31 October 2024. Failing to file your return or pay your taxes by the appropriate date can result in escalating penalties, even if you owe no tax.

Who needs to file a self-assessment tax return?

Self-assessment applies to anyone who earns income that is not automatically taxed at source. This includes:

• Self-employed individuals or sole traders.
• Those earning over £100,000 during the tax year.
• Landlords receiving rental income.
• Individuals earning income from savings, investments, or dividends.
• Those claiming certain tax reliefs or making adjustments to their tax code.
• Earners with a High Income Child Benefit Charge—this applies if your income is over £50,000 and you or your partner claimed Child Benefit during the tax year.

If you are unsure whether you need to file a self-assessment tax return, consult HMRC’s guidance or speak to a professional.

Does your accountant have what they need?

Your accountant plays a crucial role in ensuring your self-assessment tax return is accurate and submitted on time. However, they can only work effectively if you provide all the necessary documentation.

Make sure you supply:

• Records of all income sources, such as employment, self-employment, rental income, and dividends.
• Evidence of allowable expenses and receipts.
• Details of any tax reliefs you are claiming.
• Any relevant correspondence from HMRC.

Acting now and supplying this information promptly will give your accountant the time they need to prepare and file your return without delays. If you’re handling your own return, ensure all your records are organised and ready for submission.

What are the penalties for late tax returns?

Missing the self-assessment deadline comes with significant penalties, even if no tax is owed.

• Initial Fine: An automatic £100 fine applies for missing the deadline, regardless of the amount owed.
• Three-Month Penalty: After three months, daily fines of £10 accrue, up to £900.
• Six-Month Penalty: At six months, a further fine of 5% of the tax owed or £300, whichever is greater, is added.
• Twelve-Month Penalty: If your return is a year late, another 5% of the tax owed or £300 is charged.

What are the penalties for late payment of tax?

If you fail to pay your tax by 31 January 2025, late payment penalties also apply:

• After 30 days: 5% of the tax owed.
• After 6 months: An additional 5% of the unpaid tax.
• After 12 months: Another 5% of the unpaid amount.

On top of these penalties, HMRC charges daily interest on unpaid amounts at the current interest rate, which is currently 7%.

These penalties and charges can quickly escalate, making it vital to ensure your return is submitted and any tax owed is paid by the deadline.

At bk plus, we specialise in providing expert advice and support to ensure your self-assessment tax return is completed accurately and submitted on time. Don’t leave it to the last minute—contact our team today