HMRC issues new update for people due to file tax return before deadline next month

HMRC has issued a new update for individuals who are required to file their tax returns before the upcoming deadline next month. The Self Assessments for the 2023/24 tax year need to be submitted before midnight on January 31, 2025. While many households are focused on Christmas preparations, HM Revenue and Customs (HMRC) is reminding taxpayers about the option to spread the cost of their tax bill.

More than 15,000 Self Assessment customers have already opted to set up a Time to Pay payment plan for the 2023 to 2024 tax year to help manage the payments. There is still an opportunity for more individuals to do the same before the deadline. HMRC provides these payment plans to assist customers who are unable to pay their tax bill in full and need to stagger payments over monthly instalments.

Customers who owe less than £30,000 and are unable to pay the full amount can apply online for a payment plan without direct contact with HMRC. Those who owe more than £30,000 can also apply but will need to get in touch with HMRC directly. Myrtle Lloyd, HMRC’s Director General for Customer Services, emphasized the availability of help and support for customers struggling to pay their Self Assessment bill.

HMRC advises taxpayers to file their Self Assessment tax return before setting up a Time to Pay arrangement. Multiple payment options are available, including using the HMRC app or online at GOV.UK, where a comprehensive list of payment methods can be found. HMRC also encourages early filing of tax returns to avoid last-minute stress and ensure timely awareness of the amount owed.

Customers setting up a time to pay plan should budget effectively to meet monthly payment obligations, as missed payments will incur interest and penalties. HMRC also highlights the importance for individuals engaged in online selling to understand their tax obligations and determine if they need to file a Self Assessment tax return.

Additionally, HMRC reminds recipients of Simple Assessment letters that any tax owed must be paid by January 31, 2025. These individuals receive Simple Assessment letters for unpaid Income Tax that cannot be collected through PAYE by an employer or pension provider. Payments for both Self Assessment and Simple Assessment can be made in full or in smaller amounts before the deadline via GOV.UK or the HMRC app.

In conclusion, it is crucial for taxpayers to be aware of their obligations and utilise the available resources and assistance provided by HMRC to effectively manage their tax payments and deadlines. By planning ahead and taking advantage of payment plans, individuals can ensure a smoother and more manageable tax filing process.