Key Dates and Deadlines in Personal Tax
As 31 January approaches, taxpayers face the critical deadline to submit self-assessment tax returns and make payments. Despite reminders, many leave it to the last minute, causing delays and penalties for late submissions or payments.
Penalties for Late Filing and Payments
Late filing incurs a £100 penalty immediately, with additional charges for delays of three, six, and twelve months, escalating based on the tax owed. Late payments are also penalized, starting at 5% of the outstanding amount after 30 days, with further charges at six and twelve months. Interest accrues until the balance is cleared, with the current rate at 7.25% annually.
Upcoming Changes Under Making Tax Digital
From 2026, a point-based penalty system under Making Tax Digital will apply, mirroring the VAT system introduced in 2023. Penalties for failing to notify liability or errors in tax returns depend on taxpayer behaviour, ranging from reduced penalties for unprompted disclosures to significant fines for deliberate or concealed failures.
Payments on Account
Payments on account, due in January and July, often catch new taxpayers off guard, as they may need to pay 1.5 years of tax at once. Adjustments can be made if liabilities are expected to decrease, but over-reductions may incur interest if liabilities are underestimated.
Capital Gains Tax Deadlines
Capital Gains Tax payments are also due by 31 January. While full payment is typical, HMRC may allow instalments under certain conditions, though interest is charged on late payments.
Meeting these deadlines is essential to avoid unnecessary penalties and interest, and seeking advice early can help navigate these obligations effectively. We’re here to assist, call us on 0207 537 9043.