Warning as self-assessment tax customers have just weeks left to file online return or face a hefty fine 

SELF-ASSESSMENT tax customers have just weeks left to file an online return or they could face a hefty fine.

There are just three weeks left to submit an online self-assessment tax return with the final cut-off point on January 31.

It’s estimated that around 5.4 million people have yet to file a self-assessment tax return online for the 2023 to 2024 tax year, according to HMRC.

The deadline to submit a paper tax return has passed but you can still complete the forms online.

Those who miss the self-assessment deadline risk a fine of £100 if their tax return is up to three months late.

You also face further fines of £10 a day after three months, up to a maximum of £900.

If you’re six months late making your payment, you’ll be fined 5% of the tax you owe or £300, whichever is greater.

It’s worth noting though HMRC will consider a customer’s reasons for not being able to meet the deadline.

Those who provide a reasonable excuse may avoid a penalty.

People should also be aware that scammers may use the deadline to try to trick them.

HMRC has warned that workers should never share their HMRC login details with anyone, including a tax agent if they have one.

Myrtle Lloyd, HMRC’s director general for customer services, said it’s “important to file and pay on time to avoid penalties or being charged interest.”

“The quickest and easiest way to complete your tax return and pay any tax owed is to use HMRC’s online services – go to GOV.UK and search ‘Self Assessment’ to get started now.”

HMRC uses the self-assessment system to collect income tax.

Tax is usually deducted automatically from wages, pensions and savings, but people and businesses with other incomes must report it in a tax return.

You may also need to pay if you are a new partner in a business partnership or have received any untaxed income over £2,500.

Another reason you may need to file a self-assessment tax return is if you receive Child Benefit payments and need to pay the High Income Child Benefit Charge because you or your partner earned more than £50,000

You can check if you need to file a tax return by using the online tool on the GOV.UK website.

HOW TO FILE A RETURN

Before you can complete and submit your tax return, you’ll need to have a so-called unique taxpayer reference (UTR) and activation code from HMRC.

This can take a while to receive, so if it’s the first time you’re completing a self-assessment, make sure you register online immediately and ask HMRC for advice.

To sign in or register visit the self-assessment tax return section of HMRC’s website.

If you’ve already signed up for self-assessment, you can find your UTR in relevant letters and emails from HMRC.

HMRC accepts your payment on the date you make it, not the date it reaches its account – including on weekends.

Make sure you gather all of the expenses and documents relating to your income.

Having these to hand will help you race through the process.

This includes your UTR and your National Insurance number.

Once you log in to complete your online tax return, you should begin by checking your personal details.

You should then choose to fill in the sections that fit your circumstances.

With an online tax return, HMRC’s system will react to the answers you give as you put them in.

This might mean, for example, that sections that are not relevant to you are removed.

When filling in the figures, the online system gives reminders about where you can find the information to fill in particular sections.

Once you’ve filled in the empty fields, check all your numbers thoroughly before pressing submit.

When filing online, you can save your tax return at any time, so if you need to go away and double-check your figures, do so.

When you are happy that everything is correct, you can press send.

If you need help with your return, visit the GOV.UK website or call the helpline on 0300 200 3310.

There are HMRC guidance notes and manuals online, but if you’re struggling you could seek advice from an accountant or tax adviser.