HM Revenue and Customs (HMRC) is reminding Britons to submit their Self Assessment tax returns ahead of the pending deadline.
Some 44,800 people have arranged a payment plan with the tax authority to help spread the cost which is the equivalent of £148million.
More than 7.7 million Self Assessment customers have already filed their tax return for the 2022-23 tax year.
However, HMRC is warning those who still need to pay the levy to do so before the deadline on January 31 or be hit with a penalty.
The deadline for Self Assessment tax returns is looming
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Those struggling to pay their tax return in full can go online to check if they are eligible for a monthly payment plan called Time to Pay.
Taxpayers who owe less than £30,000 can check Welcome to GOV.UK’s affordability checker to determine the ideal arrangement to pay their taxes.
Interest will be applied by HMRC to any outstanding balances from February 1 which means taxpayers should act now.
Anyone who pays their current estimated tax bill through Payment on Account needs to pay the first instalment for 2023-24 by January 31.
Myrtle Lloyd, HMRC’s director general for customers services, reminded taxpayers “there is no time like the present” to arrange the right payment for paying taxes.
She added: "Whether you choose to pay in instalments, via the HMRC app or using online banking, search ‘pay your Self Assessment tax bill on Welcome to GOV.UK for a full list of options.”
A full list of potential payment options for Self Assessment taxpayers can be found on the gov.uk website.
If someone is unable to meet this month’s deadline, HMRC will assess a customer’s reasons for not being able to complete their tax return.
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Britons could arrange a payment plan by HMRC to spread the cost of their tax bill
GETTYWhile those with a valid excuse may avoid a penalty, the financial costs for missing this deadline are usually:
- An initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
- After three months, additional daily penalties of £10 per day, up to a maximum of £900
- After six months, a further penalty of five per cent of the tax due or £300, whichever is greater
- After 12 months, another five per cent or £300 charge, whichever is greater.
Furthermore, there are extra penalties for paying late including five per cent of the tax unpaid at 30 days, six months and 12 months.