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Before Saturday\u2019s deadline, a total of 3.3 million Brits need to file their tax returns.<\/p>\n
HM Revenue and Customs said that some 8.6 million people have already filed their return for the 2024-25 year.<\/p>\n
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Now, taxpayers are being urged to act now if they are yet to file, or else they risk missing the deadline.<\/p>\n
If you haven\u2019t filed yet, you also risk facing a \u00a3100 penalty.<\/p>\n
The penalties for late tax returns are:<\/strong><\/p>\n An initial \u00a3100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time; HMRC issued \u00a3325m in fines and interest charges last year, to taxpayers who paid their self-assessment bills late, according to the national accounting firm UHY Hacker Young.<\/p>\n The firm said that at least 600,000 taxpayers failed to pay their self-assessment tax by the deadline last year.<\/p>\n According to estimates by HM Revenue and Customs, \u00a38.7bn of self-assessment tax went unpaid last year, 12.5% of the \u00a369.6bn it expected to collect.<\/p>\n In business and personal taxes \u00a344bn are overdue in total, of which 86% or \u00a337.8bn is now ready for debt collection processes.<\/p>\n There are 10 last-minute checks to do to make sure you\u2019ve dodged the key tax return traps, according to Sarah Coles, head of personal finance at Hargreaves Lansdown.<\/p>\n
<\/p>\n Here is the 10-step checklist if you are one of the people who still hasn\u2019t filed their return:<\/strong><\/p>\n \u2013 Make sure you have your Unique Taxpayer Reference number and can access the Government Gateway.<\/strong> If you haven\u2019t registered for these before, the information you need can take up to 10 days to reach you.<\/p>\n \u2013 Beware of capital gains tax mistakes.<\/strong> If you sold assets like shares after 30 October 2024, the system won\u2019t automatically calculate the correct amount of capital gains tax you have to pay. You need to use the adjustment calculator on the government website to make changes to the calculation.<\/p>\n \u2013 Consider the impact of frozen tax thresholds.<\/strong> If a pay rise pushed you over the income tax threshold into paying higher or additional rate tax, the extra tax on your income may have been taken through the PAYE system, but it may also mean you have to complete a tax return. You may need to reclaim tax on pension contributions or charitable donations, or you may need to pay tax on your savings now your personal savings allowance has dropped.<\/p>\n \u2013 Consider child benefit.<\/strong> If your income (or your partner\u2019s) has pushed over the \u00a360,000 threshold, and you receive child benefit, you will need to repay at least some of it through self-assessment.<\/p>\n \u2013 Don\u2019t forget crypto.<\/strong> HMRC has been reminding people that gains from crypto need to be declared for capital gains tax purposes.<\/p>\n \u2013 Remember gains from trading on sites like eBay and Vinted.<\/strong> You have an allowance of \u00a31,000 if you\u2019re selling for profit, but after that, you need to declare this by completing a tax return.<\/p>\n \u2013 Don\u2019t rush the pensions bit. This is a common area for mistakes to happen.<\/strong> Higher rate taxpayers need to make sure they claim higher rate tax relief if it isn\u2019t done automatically.<\/p>\n \u2013 Check you have actually paid.<\/strong> You\u2019d be surprised how many people are so focused on the admin that they forget this bit.<\/p>\n \u2013 If you can\u2019t afford your bill, see if you can use a time-to-pay arrangement.<\/strong> You should be able to do this online if you owe \u00a330,000 or less, you\u2019re within 60 days of the payment deadline, and you don\u2019t already have a payment plan with HMRC.<\/p>\n \u2013 Check whether you have to use Making Tax Digital for income tax.<\/strong> Sole traders and landlords with a turnover of more than \u00a350,000 will need to use it from 6 April, so you\u2019ll need to sign up as soon as possible.<\/p>\n <\/p>\n \n <\/div>\n #HMRC #issue #warning #million #people #outstanding #tax<\/p>\n","protected":false},"excerpt":{"rendered":" Here is what you risk if you haven\u2019t filed yet Before Saturday\u2019s deadline, a total of 3.3 million Brits need to file their tax returns. HM Revenue and Customs said that some 8.6 million people have already filed their return for the 2024-25 year.
Now, taxpayers are being urged to […]<\/p>\n","protected":false},"author":1,"featured_media":3015,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[2522,442,2024,1500,2299,421,89,2523,1645],"class_list":{"0":"post-3014","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-featured","8":"tag-hm-revenue-and-customs","9":"tag-hmrc","10":"tag-issue","11":"tag-million","12":"tag-outstanding","13":"tag-people","14":"tag-tax","15":"tag-tax-return","16":"tag-warning"},"_links":{"self":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts\/3014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3014"}],"version-history":[{"count":0,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts\/3014\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/media\/3015"}],"wp:attachment":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
After three months, additional daily penalties of \u00a310 a day, up to a maximum of \u00a3900;
After six months, a further penalty of 5% of the tax due or \u00a3300, whichever is greater;
After 12 months, another 5% or \u00a3300 charge, whichever is greater.<\/p>\n