Anyone required to file a self assessment tax return for the 2022/23 tax year must do so online by 23:59 on 31 January 2024 or risk a fine and 7.75% interest.
Late filing & payment penalties
Missing the deadline and filing your tax return late will result in a £100 penalty, even if you have no tax to pay. Further penalties apply for later filing.
The deadline for filing paper returns for the tax year ending 5 April 2023 was 31 October 2023. If you file a paper return now, you would be subject to a fine.
As well as filing the return, you will also have to pay your tax liability ‘balancing payment’ for the 2022/23 tax year and make your first payment on account for the 2023/24 tax year by 11.59pm on 31 January 2024.
Late payment of your balancing payment will attract daily interest on the amount owed starting from 1 February 2024, at an interest rate of 7.75%.
In addition, you will also be fined for paying your tax late, at a rate of 5% of the unpaid tax after 30 days, six months and 12 months.
Do you need to file a self assessment tax return?
Most individuals in the UK will have their personal tax liability deducted automatically at source from their wages, savings or pensions, and will not have to file a self assessment return.
The self assessment system applies to taxpayers who are not subject to automatic deductions, such as those who are self employed, as well as high earners and those who have earned additional income in the tax year ending 5 April 2023 that has not been taxed.
Specifically, you will need to file a self assessment return if during the tax year 2022/2023:
- You were self-employed and your income was more than £1,000.
- You had multiple sources of income over £1,000.
- You earned £10,000 or more before tax from savings, investments, shares or dividends.
- You claimed Child Benefit when you or your partner earned more than £50,000 a year.
- You earned more than £2,500 from renting out property, or from other untaxed income, such as tips or commission.
- You earned more than £100,000 in taxable income.
- You earned income from abroad, or lived abroad and had a UK income.
- You need to pay capital gains tax.
- You received income from a trust.
- Your state pension was more than your personal allowance and was your only source of income (unless you started getting your pension on or after 6 April 2016).
- HMRC has told you that you didn’t pay enough tax last year (and you haven’t already paid up through your tax code or via voluntary payments).
- You filed a self-assessment tax return for the 2021/22 tax year (even if you didn’t owe any tax). You’ll need to file again this year unless HMRC has already written to you to say you don’t need to.
- You were self-employed and earning less than £1,000 but you still want to pay ‘class 2’ national insurance contributions voluntarily to protect your entitlement to the state pension and certain benefits.
How to file a self assessmemrnt return
Our guide to filing a self assessment return details the steps you will need to take. In summary, this will require you to register with HMRC self assessment to obtain a UTR number, if you are not already registered.
You will then need to submit your completed return online, and make the payment for the tax owed.
If you’re unable to pay the full balance of your tax liability, you may be able to put a payment plan in place. This can be done on the HMRC website. You will need to arrange this in advance of the 31 January deadline or you will be subject to late payment penalties.
Legal disclaimer
The matters contained in this article are intended to be for general information purposes only. This article does not constitute legal or financial advice, nor is it a complete or authoritative statement of the law or tax rules and should not be treated as such.
Whilst every effort is made to ensure that the information is correct, no warranty, express or implied, is given as to its accuracy and no liability is accepted for any error or omission.
Before acting on any of the information contained herein, expert professional advice should be sought.
Author
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services Limited - a Marketing & Content Agency for the Professional Services Sector.
