Nearly half a million Brits are at risk of missing the deadline to file their self-assessed tax returns, according to new research.Research conducted Handelsbanken Wealth & Asset Management It has been found that an increasing number of self-employed people are struggling to complete their tax obligations by the January 31 deadline.
As of January 23, HM Revenue & Customs (HMRC) reported that around 3.8 million people had not yet filed their return for the 2022/23 tax year. Those who fail to file by the deadline face a first-time fine of £100, and around 475,000 people have reported missed deadlines to their asset management companies in the past.
There is only one day left to submit before the January 31st deadline.
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Approximately 22% of those surveyed said they were worried about the financial consequences of making a mistake when applying or missing a deadline.
In a survey of self-employed taxpayers, 10% said completing their self-assessment forms can be difficult due to a lack of financial knowledge.
What’s more, one in 12 respondents said filing their taxes was a “difficult” task, as calculating income can be difficult when working for yourself.
The survey found that men between the ages of 25 and 34 are most likely to face penalties for missing the deadline, with 16% admitting they are likely to file late.
In recent years, an increasing number of British people have become self-employed due to the job market, and are now required to submit a self-declaration form.
Fifty-four per cent of taxpayers describe themselves as PAYE employees with no additional income, while around 6.1 million people have some level of self-employment income.
Around a quarter of British adults aged 18 to 34 are in the latter category, compared to just 9 per cent of Britons aged 55 and over.
This means that those who rely most on self-employment income are the most likely to make errors in filing their taxes.
Self-employed taxpayers must file their tax return on time or face a £100 penalty.
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Mark Collins, head of tax at Handelsbanken Wealth and Asset Management, said: “Self-assessment returns are clearly difficult for a significant number of self-employed people, and many “Some people are at risk of missing deadlines and are struggling to complete their returns.”
“HMRC said that although you may be able to avoid a penalty if you miss the deadline and have a reasonable excuse, you risk a £100 penalty even if the tax is not paid, and if your tax return has been filed for more than three months “Delays can result in increased penalties. Delays in paying outstanding taxes will result in additional penalties.”
If you are worried about meeting the deadline, please proceed to the next step. http://GOV.UK You can discuss your options with HMRC on our website and potentially arrange an alternative payment plan.
The deadline for filing self-assessment tax returns for the 2022/23 tax year is 31 January 2024.