The Self Assessment Tax Return deadline falls tomorrow, at midnight on January 31. Today, Martin Lewis addressed the looming deadline during his segment on the ITV show Good Morning Britain today.
Serving a final reminder about the 2018-2019 self-assessment deadline, he told ITV viewers that the Self Assessment Tax Return deadline is tomorrow.
According to the Money Saving Expert, a huge 2.8 million people still haven’t filed their 2018-2019 tax return.
“I warned you about this a few weeks ago, and if you’ve still not done it you better get your skates on – a huge 2.8 million still haven’t filed their 2018-2019 tax return,” he has said on the topic.
If a person is required to do the self-assessment, they need to complete it online before midnight tomorrow night.
They also need to pay any tax due, or they could face a £100 fine plus interest on any underpayments.
Self Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax.
If a person needs to send one, they need to fill it in after then end of the tax year (April 5) it applies to.
Should a person need to send a tax return and miss the deadline for submitting it or paying the bill, they will get a penalty of £100 if it is up to three months late.
They will need to pay more if it’s later, or if the tax bill is paid late.
The individual will also be charged interest on late payments.
A person can estimate the penalty for Self Assessment tax returns which are more than three months late, and for late payments, online using a service on the Gov.uk website.
It may be that a person can appeal against a penalty if they have a “reasonable excuse”.
Dawn Register, partner in Tax Dispute Resolution at BDO, said: “In advance of the 31 January online tax return deadline, HMRC has issued reminders about the importance of filing on time.
“Last tax year, according to HMRC figures, approximately 750,000 people missed the 31 January deadline making them liable for an immediate £100 fine.
“Following an initial fine, if the return is more than three months late, then HMRC will begin to charge £10 per day.
“If the return is still outstanding six months after the submission deadline then HMRC will charge an additional penalty of £300 or five per cent of the tax liability shown on the return, whichever is greater.
“One way to avoid the current penalty is to give HMRC what is deemed a ‘reasonable excuse’. However, the definition of a reasonable excuse is subjective and is being more frequently tested in many cases that reach tribunal.
“In addition, if you are experiencing cash flow difficulties you or your adviser can contact HMRC to formally defer payment, commonly known as a “Time To Pay agreement”.
“HMRC published updated guidance on 20th January 2020 which in HMRC says it will provide ‘extra, bespoke support to people facing financial hardship or in personal difficulty’.
“This appears to be a softening of language and approach, probably in response to recent criticisms under the loan charge debacle. HMRC states that ‘90 percent of our time to pay arrangements complete successfully’.
“For individual taxpayers there is a risk of the ‘triple whammy of penalties’. Late filing penalties, late payment penalties and penalties for errors are all possible if the tax return process is not correctly completed.
“Regardless of whether you or an accountant are preparing the tax return, leaving it to the last minute inevitably means that things are done in a rush and, even with the best will in the world, mistakes can be made which give HMRC further opportunities to charge penalties.
“Maximise your chances of getting it right and avoid the eleventh hour wherever possible.”
Good Morning Britain airs weekdays on ITV from 6am.