HM Revenue and Customs is reminding people of the importance of completing their tax return and paying their taxes on time for the 2023 to 2024 tax year.
The due date for submitting self assessment tax returns and settling any outstanding tax is January 31, 2025.
As households in Britain are busy enjoying the Christmas holidays HMRC wants to ensure that everyone is aware of the deadlines for self assessment tax payments.
Individuals who fail to file their self-assessment tax return by the 31st of January will normally face an automatic penalty of £100.
Self assessment penalties increase gradually over time in addtion to interest added on to any unpaid tax.
In anticipation of the due date, HMRC is urging qualifying taxpayers to contemplate dividing their tax payments into payment plans, providing flexibility during what is typically a difficult time for taxpayers financially.
To try and help HMRC is emphasising the various avenues available for taxpayers to handle their financial obligations during the festive holiday season.
Over 15,000 self assessment taxpayers have already used payment plans for the tax year 2023 to 2024 which proves the value of using the options available.
Taxpayers with a tax debt of less than £30,000 can use HMRC’s Time to Pay system to set up flexible payment arrangements through online channels, eliminating the need for direct communication with the tax office.
It is crucial for taxpayers to submit their self assessment tax return prior to setting up a Time to Pay agreement.
Tax payments can be completed using the HMRC app, which is both free and secure. Another option for taxpayers is to make payments directly on the GOV.UK website.
The use of online banking continues to be widely accepted, as individuals can make payments through their personal online bank accounts.
Customers who prefer to handle payments over the phone can access telephone banking services. Payments using debit or corporate credit cards can be carried out through banks or building societies.
Individuals who have a debt of over £30,000 can still make arrangements for payment, but they must personally contact HMRC to discuss the available options.
This initiative permits taxpayers to divide their payments over a period of 12 months, granting them more flexibility in terms of finances.
Myrtle Lloyd, HMRC’s Director General for Customer Services, emphasised the tax authority’s commitment to supporting customers.
“We’re here to help customers get their tax right and if you are worried about how to pay your Self Assessment bill, help and support is available,” she said.
“Customers can set up their online payment plan to suit their own financial circumstances and can spread those payments across a maximum of 12 months.”
HMRC self assessment figures show:
- 40,072 filed their 23/24 tax return over the Xmas holidays
- 4,409 individuals submitted their Self Assessment tax return on Christmas Day
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
“People who need to file a Self Assessment return and already have can enjoy the rest of the festive period knowing they’ve got it wrapped up for another year, and can enjoy singing Auld Lang Syne knowing their tax affairs are in order. For those who haven’t started yet, our online service is available 365 days a year so there’s still a chance to get it done before 2024 is out! Go to GOV.UK and search ‘Self Assessment’ to access the online help and start today.”
Educational materials have been provided by HMRC, which includes a tutorial on YouTube that explains the process of paying self assessment taxes and the available payment options.
