HMRC issues warning to self-employed people who face £100 fine within days

The deadline for people who need to submit their tax return on paper is fast approaching and the cut-off date for submitting a paper version of the self-assessment tax return is midnight on October 31, 2024.

HMRC has issued a two-week deadline alert or risk a £100 fine. The deadline for people who need to submit their tax return on paper is fast approaching and the cut-off date for submitting a paper version of the self-assessment tax return is midnight on October 31, 2024.

Dan Whittaker, a personal finance guru at VivaMoney.co.uk, has advised: "Those who earn over a certain amount of money each year are required to pay tax. Tax is usually deducted from an individual's wage or pension automatically; however, those in receipt of other forms of income, including property and self-employment, will need to report their earnings to HM Revenue and Customs (HMRC) through a self-assessment tax return."

He further clarified: "You will need to submit a Self-Assessment tax return if, during the last tax year between April 6, 2023, and April 5, 2024, you:

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• Were a partner in a business partnership
• Had an overall taxable income of more than £150,000
• Were classed as a self-employed sole trader and earned more than £1,000 before taking off anything you can claim tax relief on
• Were required to pay the High Income Child Benefit Charge
• If you've had to pay Capital Gains Tax due to selling or disposing of something that has increased in value
• if you have untaxed earnings such as tips, commission, foreign income, payments from renting out a property, or income from savings and investments.

"If you're unsure whether any of the above apply to you, you can use this handy tool on the Gov.uk website to check whether you need to send a tax return. It's better to check, rather than miss the deadline and be hit with an unexpected penalty further down the line," he said. "You can file your tax return online, or call HM Revenue and Customs and ask for a paper version of the form, known as a SA100," Dan added. "Be sure to familiarise yourself with any possible call charges before you phone."

He said: "If you choose to do a paper self-assessment return, this will need to be submitted before midnight on October 31, 2024. You have slightly longer to file online returns; these must be submitted before midnight on January 31, 2025. It might be an idea to set yourself a calendar reminder to avoid the risk of paying a penalty."

Dan warned: "HMRC will use your report to calculate how much you owe. Your individual Income Tax band will be taken into consideration, and there's also a different rate for Capital Gains Tax. Your Self-Assessment bill must be paid before January 31, 2025. It's important to be aware that missing deadlines will usually result in a penalty.

"If your tax return is up to three months late, you will be charged a £100 penalty for delayed filing. You'll also end up paying more, and will be charged interest on any late payments. He added: "Depending on the circumstances, you might be able to appeal against a penalty. There are several reasonable excuses that may permit you to appeal, including postal delays out of your control, the death of a partner or close family member shortly before the tax return or payment deadline, and issues with the HMRC online services. You can view a full list of reasonable excuses on the Gov.uk website."