UK households might be entitled to ‘thousands of pounds’ in tax relief from HMRC, experts have cautioned. In particular, individuals who earned above £50,271 last year and haven’t conducted a self-assessment could miss out on important tax relief relating to pension contributions, reports Birmingham Live.
Dean Butler, Managing Director for Retail Direct at Standard Life, part of Phoenix Group, advises: “The deadline for filing self-assessment tax returns is fast approaching, with paperwork needing to be submitted online by midnight on January 31.”
He emphasises the urgent need for those required to file a return – such as the self-employed or high earners – to act promptly: “Tax returns aren’t known for being fun, but it’s important to understand what’s required and file it on time to avoid any penalties which can be costly – last year, HMRC collected a record £220 million in late-filing fines.”
Mr Butler also noted: “Higher rate taxpayers should complete a self-assessment return every year they’ve paid higher rates, and anyone that hasn’t done this may have built up unpaid tax relief in arrears. It’s worth investigating if you think this applies to you, as you can make claims for up to four previous tax years, meaning you could be owed thousands of pounds from the government.”
Tax expert Mr Butler has issued a warning for higher rate taxpayers, stating: “HMRC doesn’t tend to prompt non-self-employed people to submit a self-assessment, so any higher rate taxpayers who pay their tax through PAYE need to actively request to submit a tax return.” He cautioned: “Make sure to check your tax code is correct before submitting your self-assessment.”
Offering advice, he added: “If you need assistance with your self-assessment, then you can contact HMRC, or find an accountant accredited in the UK to help, which can be relatively inexpensive. You can also appoint a relative or friend to fill in and send your tax return on your behalf.”
Furthermore, Mr Butler explained: “You’ll also be sent your activation code, which can take up to ten days to arrive. You need to activate your account within 28 days of the code arriving, or it’ll expire. You’ll then be able to use the HMRC online service to submit your return. Alternatively, you can send your tax return via post.”