With the festive season in full swing, HM Revenue and Customs (HMRC) is urging taxpayers to prioritise their Self Assessment tax returns ahead of the looming January 31, 2025, deadline. For many, Christmas brings financial strain, but experts warn that leaving tax submissions and payments until the last minute could add unnecessary stress to an already demanding time of year.
Andy Wood, an international tax adviser from Tax Natives, highlights the importance of acting quickly.
He said: “January may feel like a long way off as we focus on Christmas preparations, but the reality is that the Self Assessment deadline is just weeks away. Last-minute filings can result in avoidable penalties and missed opportunities to arrange flexible payments.”
The Time to Pay system offered by HMRC allows those who owe less than £30,000 to set up a payment plan online, spreading the cost over up to 12 months. For taxpayers with larger tax bills, flexible arrangements can be made by contacting HMRC directly. More than 15,000 customers have already taken advantage of this system for the 2023 to 2024 tax year.
“HMRC’s Time to Pay system is a fantastic tool for taxpayers needing extra breathing room. However, to take advantage of this, you must complete your Self Assessment return first. Delaying this process could mean missing out on the chance to manage your payments in a way that suits your financial circumstances.”
The penalty for late filing is £100, which can increase significantly over time if the delay persists. Late payment penalties are also added to outstanding balances. Andy Wood urges taxpayers not to underestimate the importance of acting fast.
“Failing to file your tax return or pay on time can result in financial penalties that only add to the burden. By acting now, taxpayers can avoid these costs and take control of their financial commitments,” he said.
HMRC has also made it easier than ever for people to settle their tax bills. Taxpayers can use the free HMRC app, the GOV.UK website, or traditional methods like online banking, telephone banking, or even payments via debit or corporate credit cards.
Wood notes the variety of payment options but advises taxpayers to carefully plan their approach:
“HMRC has made significant strides in offering flexible, convenient ways to pay, from online banking to the HMRC app. Take a moment to review your options and choose the method that works best for your financial situation. Planning now could make January far less stressful.”
As households across the UK focus on festive celebrations, Wood reminds taxpayers to prioritise their financial health:
“Christmas is a time for joy, not stress. By taking a proactive approach to your Self Assessment obligations, you can enter the New Year with peace of mind, knowing your finances are under control. Support is available for those who need it – don’t hesitate to use it.”
