£100 Fine Warning: Millions Yet to File Tax Returns as HMRC Deadline Approaches

£100 penalty: Your loss- HMRC Self Assessment tax return Deadline is coming

Until midnight on 31 January 2025, all self-assessment tax returns for assessment year 2023/24 must be submitted. Be punished with a substantial fine if you don’t file on time. Find out more about who needs to file, and get information on late filing penalties and significant changes in HMRC rules affecting Child Benefit claimants.

Who needs to file the Self-Assessment Tax Return?

Not everybody needs to click on that Self-assessment tax return file. However, you have to quite obviously complete and submit one in one of the categories listed below:

• For those involved in Self-Employment: In case you have any additional earnings, other than the PAYE (Pay As You Earn) salary income.
• Income from other sources: The income received from a source other than employment, for instance, a self-rented house, income from co-ownership, any investment return, etc.
• Joint Income That Touches the Ban While Accessing Child Benefit: If either of you made an amount of £50,000 or higher in the 2023/24 tax year.
• Those Who Remain in the Shadow: Freelancers, contractors, or people self-employed in the gig economy.

Ren being Child Allowances to Avoid High Incomes

If you claimed child benefit and you or your partner earned more than £50,000 in the 2011/12 tax year, you have to declare it in your tax return.

• Over £50,000 and up to £60,000: In this sum, payments fall off on child benefit.
• Income over £60,000: In this situation, your whole child benefit will end.
• Partner’s income: If your partner has an income of more than £50,000 and you have a lower income, they must declare this on their tax return.

Important changes for tax year 2024/25

The new HICBC limit for the 2024/2025 tax year is £60,000. However, when filing the 2023/24 return, it will retain the old limit of £50,000.

Deadline for self-assessment tax returns

The deadline for self-assessment tax returns for 2023/24 is scheduled for midnight on 31 January 2025.

Penalties for missing deadlines:

If you fail to file your return on time, you will be subject to a penalty.

Delay Period	Penalty
Missed Deadline (from February 1, 2025)	£100 fixed penalty
3 months late	£10 per day (up to £900)
6 months late	5% of tax due or £300 (whichever is greater)
12 months late	Another 5% of tax due or £300 (whichever is greater)

• £100 penalty for filing your return late.
• Other penalties: Penalties may increase if you delay it further.

How ​​to submit a Self-Assessment Tax Return?

Follow the following steps to submit your Self-Assessment Tax Return:

• Go to gov.uk and log in to the HMRC portal.
• Gather your P60s, P45s and details of any additional income.
• Enter details of your accurate income.
• Identify deductions that could reduce your tax bill.
• Submit your return before 31 January 2025 to avoid penalties.

For first-time filers:

If you’re filing a return for the first time, you’ll need to register for Self-Assessment with HMRC before you can lodge it.

Important advice:

• If you’re eligible for Child Benefit and your income is over £50,000, don’t forget to declare it.
• Missing the deadline can lead to hefty penalties, which add up over time.
• Filing your return early will not only save you from penalties, but also save you from last-minute stress.

Conclusion:

Don’t forget to lodge your Self-Assessment tax return by 31 January 2025. If you’re not sure whether you need to file a return, seek professional advice or use HMRC’s online resources. By filing returns on time, you can not only avoid penalties but also manage your financial situation better.

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