HMRC has issued a stark warning to taxpayers, reminding them that they have just over two weeks left to act. The January 31 deadline is fast approaching and given the detailed information required for a tax return, it’s crucial to allow enough time to complete the document accurately.
This will help minimise your bill and avoid penalties. With only 18 days remaining until the January 31 tax return deadline, Alastair Douglas, CEO of TotallyMoney, has discussed side hustles, expenses, and HRMC’s high interest charges, reports Birmingham Live.
Mr Douglas warned: “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.”
He added: “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.”
He also advised: “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.”
For those navigating the complexities of tax returns, an expert advises: “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.”
Additionally, “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, highlights the perils of procrastination: “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.”
Further underscoring the urgency, she adds: “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.”