Self Assessment Tax returns – less than 20 days to go!

Self Assessment Tax returns – less than 20 days to go!

There are now less than 20 days left to file your Self Assessment Tax return for the tax year 22/23.

The deadline remains as 31 December 2024 at midnight, and as soon as you pass the midnight hour, the first fine will be charged of £100.

But did you know that almost a quarter of all income tax and capital gains tax was paid by just 100,000 individuals who shelled out a total of £55.9bn, despite representing only 0.3% of taxpayers. With an average income and capital gains tax bill of £559,000 each in 2021/22, up by 18% from £475,000 in the previous year. These taxpayers also paid almost a quarter (24.1%) of HMRC’s annual take from these taxes, despite accounting for just 0.3% of UK taxpayers.

In total, tax paid by all UK income and capital gains tax taxpayers was £232.7bn in tax year 2021-22, up by over £40bn from £190bn in 2017-18.

The share paid by the wealthiest is likely to rise significantly when the effect of frozen thresholds and the lowering of the 45% additional rate tax entry point to £125,140, which came into force on 6 April 2023, is included in the figures. Already this tax year, HMRC has raised nearly £50bn more in taxes than the same period the previous year.

But whether you fall into the wealthiest bracket or not, HMRC still expect to receive your Self Assessment on time or you will be fined.

If you are not able to make the full payment, then you need to contact HMRC before the deadline, using their online ‘Time to Pay’ service and agree a plan to pay your tax. This is available if you owe less than £30,000 in tax.

If you need to talk to us here at Kennedys Accounting regarding your Self Assessment, please give us a call – we will be happy to help.