Tax returns deadline reminder

It’s great to take a much needed break over the festive period, however, now we’re back in routine, don’t forget that the deadline for filing your tax return for the year ended 5 April 2024 is just around the corner. With less than a month left, now is the time to prepare to meet the 31 January 2025 deadline.

The deadline for submitting your online tax return is 31 January 2025. This is the final date to file your return without incurring any penalties.

Any final tax payments for 2023/24 must also be paid by 31 January 2025. If you make advance payments towards your bill (known as ‘payments on account’), you’ll have to make your first payment on account for 2024/25 by the same deadline (with the second payment on account being due by 31 July 2025).

Penalties for late filing
Missing the tax filing deadline can result in penalties.

• Initial penalty: If your tax return is late, you’ll be fined £100.
• Additional penalties: Beyond three months, daily penalties of £10 per day (up to a maximum of £900) can be applied. Further penalties are added if your return is six months late or more.

What about late tax payments?
Any tax paid late will attract late payment interest from the due date to the date of payment. Interest rates have increased significantly in recent times, so make sure you pay what’s owed on time to avoid being charged.

Penalties: these will apply from the late payments after 31 January 2025: 5% of your outstanding tax liability if it’s paid 30 days late, another 5% at six months late and then another 5% of the outstanding tax liability at 12 months overdue.

Time to pay arrangements
If you’re unable to pay your Self Assessment tax bill on time, you can set up a Time to Pay arrangement with HM Revenue and Customs (HMRC). This allows you to pay your tax bill in manageable instalments. To qualify, you must have filed your latest tax return, owe less than £30,000, and be within 60 days of the payment deadline, so you’ll need to get your tax return submitted in good time if you need to arrange a Time to Pay plan.

It’s important to contact HMRC as soon as possible to discuss your options and avoid penalties. This can help ease the burden of a large tax bill and help you stay on top of your financial obligations.

Need help?
With less than a month left until the 31 January 2025 deadline, you should act now to avoid penalties. Don’t forget about your tax returns and forward on the required information to your usual contact at Larking Gowen. You can find contact details on the Our People section of our website or you can contact enquiry@larking-gowen.co.uk or call us on 0330 024 0888.

Chloe Griner