Haines Watts : Self Assessment filing figures over the Christmas period.

Haines Watts : It’s a cracker!

It’s a cracker! As 3,275 file their Self Assessment tax returns on Christmas Day.

HMRC recently published figures revealing that whilst millions of people enjoyed their Christmas festivities this year, for at least 3,275 people, Christmas Day was the perfect time to file their Self Assessment tax return.

With a further 10,311 people opting to file tax returns on Boxing day, leaving them free to enjoy New Year celebrations knowing that their tax return was complete.

The deadline to file and pay any tax owed for the 2021 to 2022 tax year is 31 January 2023, and HMRC are reminding anyone still to submit their 2021-22 tax return to do so by this deadline, or they may face a penalty.

The penalties for late tax returns are:

• 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 3 months, additional daily penalties of £10 per day, up to a maximum of £900;
• after 6 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 of; 5% of the tax unpaid at 30 days, 6 months and 12 months.

Once your tax return is filed, you can find out about the different ways to pay any tax due here.

If you are unable to pay your tax in full, you can contact HMRC to find out about arranging an affordable payment plan, known as Time to Pay, read more about it by clicking here. 

If you require help with filing your personal tax return or on any other aspect of your tax affairs, please contact your local Haines Watts office today, we would be happy to provide a quotation to assist you with dealing with your tax affairs.

• Nottingham office
• Derby office

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Protection from HMRC investigation

HMRC enquiries are better targeted and being undertaken with an unprecedented level of detail and persistence.  The Government are investing £161m in HMRC to boost their activity, a move forecast to bring in an additional £3 billion of tax revenue.  Up to December 2021, HMRC launched over 137,000 tax investigations, up 9% from the same period in 2020.  This equates to HMRC opening a staggering 1,062 enquiries per day.

The cost of defending yourself professionally is potentially huge; enquiries are taking longer and the defence costs are increasing.  Even when the outcome of the enquiry results in no adjustments to your tax position, the cost of the defence can be just as costly.

The solution

One of the services we offer to our clients is a Professional Fee Protection (PFP).  This PFP provides a valuable Tax investigations service which enables us to defend you in the unfortunate case that you are selected for an enquiry without worrying about the cost. We are confident that the service delivers comprehensive protection against any potential fees arising from professional representation in the event of an HMRC enquiry.  Further details can be found in our brochure.

Information available from GOV.UK regarding Self Assessment:

• To find out about Self Assessment visit HMRC.
• To find your Unique Taxpayer Reference (UTR), make a Self Assessment payment, get your National Insurance number or get your employment income and history. Try using the new  HMRC app  or the Personal Tax Account.
• Make sure you don't fall victim to scams, HMRC advise that to avoid scams you must never share your login details with anyone else, as these can be used to make fraudulent claims. You can find the latest HMRC scams advice here.