Wondering about when is the tax return deadline? In the UK, self-assessment tax returns are normally due to HMRC at the end of the tax year. However, as with most things, there are some exceptions and special procedures. If you file a self-assessment tax return, you may not have filed it by the normal deadline of 31 January. If that is the case, your tax return is due on 6 April, but penalties may apply.
If you pay tax on a self-employed individual or taxable pay tax basis, your tax return is due 6 months after the end of the tax year. This means your return is due on 6 April for the current (2024/25) tax year. This is also the case if you have untaxed profits on the Self-Employed Income Tax Return.
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When is the Tax Return Deadline – Online Tax Returns and the First Payment on the Account
In the UK, Online Tax Returns (OTR) are the tax self-assessment system used by self-employed people. Including foster carers. They provide a convenient, simplified way to file tax returns and make payments online. Here are some key points to keep in mind about self-assessment taxes and the first payment due:
1. Self-assessment taxes are paid every quarter, at the end of the tax period.
2. The first payment is usually due on 31 January.
3. After filing tax returns and making the first payment, future payments are due on 31 December, 30 April, and
4. For the first year, HMRC will inform you of your tax liability and how much you need to pay in the first tax period.
5. If you miss a self-assessment payment, penalties may apply. However, if there is a good reason behind the delay, you may be able to appeal the penalty charge.
6. The HMRC may offer payment plans to facilitate and smooth the process.
7. In some cases, you can apply to defer your tax payment, which means that you can pay later than the normal filing date.
What is the First Day of the New 2024-25 Tax Year?
The first day of the 2024/25 UK tax year is 6 April 2024. The 2024/25 tax year will run from 6 April 2024 to 5 April 2025. The new tax year period is referred to as the “2024/2025 tax year” or “2024/25 tax period”. In 2024/25, self-assessment due dates for the 2024/25 tax year will likely be:
1. 31 January 2025 for self-assessment tax returns and payments
2. 31 March 2025 for balance payments not covered by payments on account
3. 31 July 2025 for payments on account of self-assessment taxpayers not eligible for advance payments.
Payment on account and advance payments are designed to make the self-assessment process simpler and more manageable for taxpayers. They provide an estimate of taxes that are due and allow you to pay them for the year. HMRC may request advance payments for self-assessment taxpayers:
1. who have a tax burden of at least a certain limit in the current or previous tax year.
2. who had an underpayment of tax at the last self-assessment point.
3. who have certain complex arrangements.
When is the Second Payment on the Account Due?
The second payment on account for 2024/25 is likely due on 30 June 2025. This payment is designed to cover any income tax that may arise during the second part of the 2024/25 tax year (6 April 2024 to 5 April 2025).
HMRC will provide your estimated tax liability and when to make the second payment on the account in the official tax notice that will be issued closer to the end of the tax year.
If you are a self-employed person with a tax liability, you may be eligible for a Simple Assessment Service instead of a full self-assessment tax return. The Simple Assessment Service is a simplified option that is designed to make self-assessment easier and more manageable for smaller businesses. If you are eligible for SAS, then HMRC will send you a Short Assessment tax notice telling you what tax liability you have and what to pay.
When to Register for Self-Assessment?
To register for a self-assessment tax return in the UK, you should register with HMRC around the time that you become self-employed. This can be after you begin your business or a temporary job that makes you self-employed. You can register either as soon as you become self-employed. Within one month of beginning self-employment, or by the end of the tax year in which you begin self-employment.
It’s important to register promptly to avoid any penalties or tax implications. Online Tax Returns for self-assessment tax earners have two deadlines for filing. Depending on whether a tax return was filed for the previous year:
1. The first ITR deadline for self-assessment taxpayers who filed a tax return for the previous tax year is 31 January. This is referred to as the “normal filing date”.
2. The second ITR deadline is 6 April for self-assessment taxpayers who did not file a tax return for the previous tax year. This is known as the “late filing date”.
When are Paper Tax Returns Due?
Paper self-assessment tax returns are usually due on the same dates that self-assessment tax returns filed online are due. However, this may depend on the nature of the return and who is due to file the return. The following dates are examples of paper tax return filing dates:
1. 31 January for ordinary (online) self-assessment returns for the current tax year.
2. 31 January for self-assessment returns for people who missed the previous tax return due date.
3. 6 April for paper returns filed for non-taxpayers who missed the previous due date.
What are the Fines for Late Tax Returns?
The fines for late tax returns in the UK may be:
1. 5% per month of the tax owed, with a maximum of 100%. This penalty applies from 6 April until 31 January of the next tax year.
2. 20% of the tax owed for each additional month between 31 January and 6 April.
3. Tax returns that are not filed by 6 April may be considered to be missing completely, resulting in the taxpayer being charged with a charge of tax rather than a late filing penalty.
If your return was late because your tax liability was less, you may be eligible for a reduction in fines or an exemption from fines. This will depend on when you filed the return and why it was late or missing. Please contact HMRC for more information about your situation.
The Bottom Line
In conclusion of when is the tax return deadline, the deadline for filing self-assessment tax returns in the UK is likely to be 31 January in most cases. Exceptions to the deadline are for late or missing tax returns filed by 6 April. Late filing penalties may apply if you do not file before 6 April. If your tax liability was less than a certain limit, there may be a reduction in fines or exemption. The best way to ensure timely filing and avoid fines is to file your self-assessment tax return as soon as possible.
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Disclaimer: The information provided on AccountingFirms.co.uk is for informational purposes only and should not be considered as financial advice. Always consult with a professional accountant to ensure compliance with UK laws and regulations.