Nearly 45,000 taxpayers sign up for HMRC Payment Plans
Nearly 45,000 taxpayers sign up for HMRC Payment Plans
As the deadline to submit self assessment tax returns gets closer, nearly 45,000 people have set up a payment plan for the tax that they owe with HMRC.
Although getting close to 8 million self assessment tax returns which have already been filed for the 2022 to 2023 tax year, there are still in the region of 4m tax returns outstanding and due by 31 January 2024.
HMRC is reminding anyone who still needs to pay their tax bill to do so before the deadline on 31 January or risk facing a penalty.
Those who are unable to pay their tax bill in full at this time can check online to see if they can set up a monthly payment plan called ‘Time to Pay’. If the amount owed is less than £30,000, then you can use the HMRC affordability checker to help decide the best arrangements. Interest will be applied to any outstanding balances from 1 February, the same day as penalties kick in for late filing.
Penalties
HMRC will consider a taxpayer’s reasons for not being able to meet the deadline for completing their self assessment on time. Those who provide HMRC with a reasonable excuse may avoid a penalty, however the penalties for late tax returns are as follows:
• an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time;
• after three months, if the tax return is still not filed, additional daily penalties of £10 per day, up to a maximum of £900;
• after six months, a further penalty of 5% of the tax due or £300, whichever is greater;
• after 12 months, another 5% or £300 charge, whichever is greater.
There are also additional penalties for paying late – 5% of the tax unpaid at 30 days, six months and 12 months. Interest will also be charged on any tax paid late.
During January, HMRC is providing helpline support to taxpayers who have queries about self assessment payments, repayments and who need help completing their tax return.
If you still need help to file your self assessment tax return, time is running out fast – please get in touch with us here at Kennedys Accounting and we will be pleased to assist – there is still time to file on time and set up a ‘Time to Pay’ arrangement before 31 January 2024.