On 24 January and with just a week remaining until the deadline for Self Assessment on 31st January HMRC are urging 3.8 million individuals who have not yet submitted their tax returns to take action immediately to avoid a penalty of £100.
HM Revenue and Customs (HMRC) anticipates receiving over 12.1 million tax returns for the tax year 2022 to 2023. So far more than 8.3 million online returns have been successfully received.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
“If you are a Self Assessment taxpayer, now is the time to take action and get your return done. People can familiarise themselves with the process by checking out HMRC’s online resources on GOV.UK. Once a tax return is submitted, it’s easy to find out what’s owed and to pay online or using the HMRC app. Just search ‘pay my Self Assessment’ on GOV.UK to find out more.”
Cancel your tax return if you don’t need to file
If you don’t need to file a 22/23 tax return then tell HMRC so they can cancel it for you. In many cases HMRC needs to be made aware of the reasons why you don’t need to file.
Cancelling your tax return before the deadline is much better than having to cancel it after and any late filing penalties as well.
How to pay 22/23 self assessment tax
If you owe income tax for the 22/23 tax year through self assessment HMRC makes it easy to pay them in a few different ways.
Using online services like your personal/self assessment tax account or the HMRC app are popular along with other online options like direct debit and via online banking.
If you miss the self assessment payment deadlines HMRC will automatically apply interest to the amount of income you owe through self assessment.
Time to pay for the 22/23 tax year
If you are unable to make full payment of the income tax you owe HMRC is willing to assist you in finding a manageable method to pay your tax debt.
You may be eligible to establish a time to pay agreement which is typically available for individuals who owe less than £30,000.
In most cases you can set up a time to pay arrangement online allowing you to bypass the need for direct communication with HMRC.
Class 2 NIC for the self employed
If you are self employed and your earnings from working for yourself fall within the range of the Small Profits Threshold and the Lower Profits Limit, you won’t have to pay Class 2 National Insurance Contributions (NICs).
This is part of the national insurance tax cuts brought in by the government last year.
Instead, you will be considered as having paid Class 2 NICs, which will grant you access to contributory benefits just as if you had made the actual payment.
Need help with your tax return?
If you need help with completing your tax return HMRC let you contact them in a few different ways but have restricted phone support up to the end of January 2024.
The HMRC digital assistant is available online along with YouTube webinars and some toolkits.
You can find free guidance and support from other organisations that are unconnected to HMRC like TaxAid, low income tax reform group (LITGR) and Tax Help for Older People.
Or you can find an accountant locally or nationally who offers self assessment tax return services.
