Record-Breaking Filings
On the 31 January deadline, HMRC confirmed that they received more than 11.5 million self-assessment tax returns for the 2022-23 tax year. This total includes over 778,000 taxpayers who finalized their filing on the last day, with nearly 33,000 submitting in the final hour (between 23:00 and 23:59) before the deadline.
While this set a record for the highest number of filings, approximately 600,000 taxpayers have missed the deadline and have yet to file. Did you miss the 31 January 2024 filing deadline for your 2022-23 self-assessment returns?
Penalties and Payment Plans for Late Filers
If you miss the filing deadline, HMRC typically imposes a £100 fixed penalty for returns up to 3 months late, regardless of whether you owe tax. Failing to file and pay by 1 May 2024 results in additional penalties, unless you arrange payment with HMRC.
If you can not pay the tax bill, you can choose an online time-to-pay payment plan to spread the cost of tax due on 31 January 2024 over up to 12 months. This option applies to debts up to £30,000, and you must establish the payment plan no later than 60 days after the debt’s due date. It’s advisable to do this sooner rather than later, as HMRC will impose a 5% late payment penalty if tax remains outstanding and a payment plan hasn’t been set up before 1 April 2023.
For self-assessment tax payments exceeding £30,000 or for those needing longer than 12 months to pay in full, you can apply to set up a time-to-pay arrangement with HMRC, although you can’t do this using the online service.
Plan ahead for the 2023-24 tax year by spreading the cost of your tax bill using HMRC’s Budget Payment Plan. This plan allows you to make regular weekly or monthly contributions towards your next tax bill if you’re up to date with previous payments.
