The cost of procrastinating over your tax return
5 December 2024 • Battersea, Chelsea, Chiswick, Fulham, Hammersmith, Kensington, Knightsbridge, Mayfair, Putney, Wandsworth, Warrener Stewart, Wimbledon
Are you a Self Assessment procrastinator? If so, you are not alone.
HMRC was expecting around 12.1 million tax returns to be filed for the 2021/22 tax year.
The deadline for filing is midnight on the 31st of January. A staggering 61,549 tax payers finally got round to filing their returns on the day of the deadline between 16:00 and 16:59 – which is the peak time for filing. A further 32,958 only just made it past the post, filing their returns between 23:00 and 23:59. And, while a record-breaking 778.068 made the midnight deadline, around 1.1 million did not!
To say most people do not enjoy preparing their Self Assessment return would be a massive understatement. Many find it time consuming, complex, and extremely stressful. But putting it off, then having to do it in a rush at the last minute, is a sure-fire recipe for disaster. Every year thousands end up either missing the deadline, or not completing their returns correctly and having to pay fines as a result.
To help kick start the process here are a few recommendations and points to bear in mind when considering your next Self Assessment tax return.
- Start early – Taking the time to collate your information rather than rushing to meet the deadline reduces the chances of making mistakes or missing things.
- Take advantage of tax planning strategies – Early filing allows you to take full advantage of tax planning strategies that can minimise your liability.
- Forearmed is forewarned – Starting your assessment sooner means you know in advance what you’ll owe, so can budget for payments rather than face a one-off lump sum.
- Late filing means penalty fines – Late filing and payment of your tax return can result in hefty fines and interest charges. Missing the 31 January deadline is an immediate £100 fine which increases over time. Interest is also charged on unpaid tax from the due date until payment is made.
- Rushing can lead to costly mistakes – Careless errors can mean you end up paying more tax than you actually owe. If you do end up owing extra tax it will attract additional charges of 30%. Also, if you miss out any essential information HMRC is likely to follow up and may even investigate.
Do consider getting professional advice
Advice and support from a professional tax accountant will save you time, reduce stress and potentially save you money.
Warrener Stewart offers a comprehensive and accurate self-assessment service to ensure that your tax return is filed correctly and on time, helping avoid penalty fines and providing peace of mind. Our service includes:
- Ensuring you are correctly registered with HMRC
- Helping you gather the required information
- Advising which financial records you need to keep
- Calculating your tax liability, completing your return, and filing it on your behalf.
- Making sure that you are aware of any tax liability, and when it needs to be settled
We will also check your self-assessment is completed, taking advantage of any benefits – some often get overlooked.
So, if you are still procrastinating over your 23/24 tax return, we can help. Call 020 7731 6163 to speak to a member of our tax team, or email info@warrenerstewart.com and we’ll get back to you.
Interesting stats
- 12,187,811 Self Assessment returns due
- 11,581,962 returns received by 31 January (including expected returns, voluntary returns, and late registrations)
- 11,027,962 expected returns received by 31 January
- An estimated 1.1 million customers missed the deadline
*Source – HM Revenue & Customs (HMRC)
