Self-Assessment Deadline Looms: 3.8 million Individuals Yet To File Tax Returns

With only a week to go until the January 31st deadline, a sizeable 3.8 million individuals in the UK are yet to submit their self-assessment tax returns, leaving themselves open to potential fines and a last-minute scramble.

HM Revenue & Customs (HMRC) expects over 12.1 million tax returns for the 2022-23 tax year, but as of this week, only 8.3 million have been filed. This leaves a significant chunk of taxpayers facing a potential £100 penalty for late submission, and further penalties if returns remain unfiled beyond February 28^th, as well as interest due on any late payment on taxes owed.

"It's now crunch time for self-assessment taxpayers," warns Myrtle Lloyd, HMRC's Director General for Customer Services. "We urge everyone who hasn't yet filed their return to act now to avoid penalties and ensure they're meeting their legal obligations."

Reasons why so many people are lagging vary, but common culprits include:

• Procrastination: The dreaded "I'll do it later" syndrome, often fuelled by the complexities of the tax system and the tedious nature of gathering paperwork.
• Uncertainty: Confusion about who needs to file, what income needs to be reported, and how to claim deductions can lead to paralysis.
• Lack of Resources: Some people may struggle to find the time or expertise to navigate the self-assessment process, especially if they have complex financial affairs.

Actions you can take to avoid penalties and interest:

• Gather your documents: Start by collecting all your income and expense records, including P60s, bank statements, and receipts.
• Use online resources: HMRC's website offers a wealth of guidance and tools to help you complete your return, including calculators and step-by-step instructions.
• Seek professional help: If you're feeling lost, consider seeking advice from an accountant or advisor. Remember, the cost of professional help can often be offset by the penalties you might avoid.

With the clock ticking, the message is clear: don't delay, file today. HMRC offers extended payment plans for those facing financial difficulties. By taking action now, you can avoid the stress of penalties and ensure you're fulfilling your tax obligations