The deadline for submitting your online tax return is right around the corner…
31st January 2025 Deadline
Anyone submitting their tax return by paper should have done so by midnight on 31st October 2024. Those submitting an online return have until midnight 31st January 2025.
31st January is also the deadline for paying your balancing payment (any tax you still owe for the previous tax year) and your first payment on account (a payment towards your next tax bill).
Who Must Fill Out a Self Assessment?
You must send a tax return if in the last tax year you:
- Were self employed and earned over £1,000
- Were a partner in a business partnership
- Had a taxable income over £150,000
- Had to pay Capital Gains Tax when you disposed of something that increased in value
- Had to pay the High Income Child Benefit Charge
You may also need to send a tax return if you have untaxed income, e.g:
- Rental income
- Tips or commission
- Income generated from savings, investments or dividends
- Foreign income
Some people may choose to fill in a tax return in order to:
- Prove self-employment
- Claim Income Tax reliefs
- Pay voluntary National Insurance contributions
If you have to send a tax return and have never sent one before, you must register for self assessment. The deadline for this is 5th October.
How Tax Bills Work
Payments are essentially done in two instalments (31st January and 31st July). Payments on account are calculated based on your estimated earnings (usually worked out from your earnings the previous tax year). This estimated amount is then split into two payments: one which you pay on 31st January, and one which you pay on the 31st July.
If you then still owe money, because you have earned more than was estimated, you then have to pay this as a balancing payment, which also has the deadline of 31st January.
Late Penalties
You will face penalties if you need to send a tax return and miss the deadline for submitting it or paying your bill.
To check that you’re paying the right amount of tax, HMRC can look into your financial records and tax affairs.
When deciding penalties, they consider the nature of the error, its effect on your bill, whether the error was deliberate, and your cooperation with their investigation. Penalties can run up to 100% of tax owed whilst also still paying the correct bill.
If your tax return is up to 3 months late, the late filing penalty is £100. If it’s later or you pay your tax bill late, the penalties run higher.
This calculator gives estimates for how much you would need to pay in penalties and interest if you have missed the deadline for sending your self assessment or paying your bill for it.