The clock is ticking for the 2023/24 Self-Assessment tax return deadline. With just two weeks to go, 4.4 million taxpayers have yet to file their returns, according to HMRC. At Daykin Scott Accountants, we’re here to ensure you don’t fall into the last-minute rush or risk costly penalties. Here’s everything you need to know to get ahead this tax season.
Why Filing on Time Matters
Missing the 31st January deadline comes with an immediate £100 fine, even if you owe no tax. Last year, HMRC collected a record £220 million in late-filing penalties – money that could have been avoided with timely preparation.
If you’re filing for the first time, remember that it takes 10 days to receive a Unique Taxpayer Reference (UTR) number from HMRC.
Who Needs to File a Tax Return?
You may need to file a return if you:
Are newly self-employed and earned over £1,000.
Earned £150,000 or more.
Received untaxed income over £2,500.
Are a partner in a business partnership.
Receive child benefit and earn more than £50,000, triggering the high-income child benefit charge (HICBC).
This year, HICBC remains at the £50,000 threshold, despite the increase to £60,000 for the 2024/25 tax year. Don’t let this cause confusion – it’s critical to calculate your liability correctly for this return period.
New Reporting Rules for Online Sales and Crypto Gains
Taxpayers with side hustles or those who sell on platforms like eBay, Facebook Marketplace, or Airbnb should be aware of HMRC’s increased oversight. Platforms are now required to report transaction data, making it harder to conceal untaxed income.
Additionally, profits from crypto assets are now explicitly reported on tax returns under a new field for capital gains tax. If you’ve sold crypto or other investments, make sure to include this information to avoid potential penalties.
Helpful Tools from HMRC
Did you know you can access vital information, like your UTR and National Insurance number, through HMRC’s Personal Tax Account? Using the HMRC app, you can also:
Check your employment income and history.
Make Self-Assessment payments.
Access tools to calculate your tax liabilities.
How Daykin Scott Can Help You
Tax returns don’t have to be a headache. Our experienced team specialises in assisting sole traders, landlords, freelancers, and more to ensure accurate and timely filings.
Act Now With over 11 million tax returns filed last year, the system gets busier as the deadline approaches. Avoid the stress and potential penalties by letting us handle your return.
Contact us today to get started and tick your tax return off your to-do list!
