HMRC has issued a warning that taxpayers have just over two weeks left to act. The January 31 deadline is looming, but a tax return requires detailed information so allowing enough time to complete the document accurately is vital to minimise your bill and prevent penalties.
With just 18 days until the January 31st tax return deadline, Alastair Douglas, CEO of TotallyMoney discusses side hustles, expenses, and HRMC’s high interest charges. Mr Douglas said: “With more people making money from side hustles started during lockdown, and earning extra cash to help with the cost of living, some might not realise they need to file a return this month.
“That includes anyone earning £1,000 or more by selling on sites like Vinted, Ebay or Etsy. And while you might not think the taxman will catch up with you, these platforms are required to pass your information on if you’ve sold more than 30 items or earned more than £1,700.
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“You should also double check what counts as an expense. Charitable donations, fuel and parking, interest on business loans, uniforms, and even a proportion of household utilities if you’re working from home can all count. And by including these on your return, you can reduce your overall bill. But remember that you’ll need to provide evidence of them if there’s an inspection.
“If you’re not sure of anything, then call HMRC on 0303 1234 500. It’s best to do this early in the morning and to avoid lunchtimes and evenings. That’s when the lines should be quieter. Opening times are 8am to 8pm on weekdays, and 8am to 4pm on Saturdays, and they’re closed on Sundays.
“Once you’ve completed your form, and you’ve double checked all the information is correct, then submit your return as soon as possible. That way you can avoid the rush and any last minute issues. Importantly, you’ll need to make the payment by 31st of January too. That’s because HMRC will charge interest at 7.25% on anything later than that, starting on February the 1st.”
Alice Haine, Personal Finance Analyst at Bestinvest by Evelyn Partners, the online investment service, commented: “Putting off personal finance decisions is something many of us do but leaving your Self-Assessment tax return until the last minute is risky because the document requires so much attention.
“Almost 5.5 million people are yet to file their online return for the 2023-24 tax year. Leave it too late, however, and you risk missing the deadline for online submission at midnight on January 31, 2024, and incurring an instant fine with additional penalties the later the return is filed or any tax owed is paid.”