HM Revenue and Customs (HMRC) self assessment tax return deadline is approaching fast, and some people may not be aware they need to act.
Child Benefit claimants who earned £50,000 or over in the 2023/24 tax year are included, and failing to complete a return could land them with a fine.
Dean Butler, managing director for retail direct at Standard Life, part of Phoenix Group, said: “If you earned over £50,000 in the 2023/24 tax year and you or your partner claim Child Benefit, you have to declare this on your self-assessment tax return, or you may face a penalty.
“This is called the High Income Child Benefit Charge and it means you won’t be entitled to some or all of the Child Benefit. If your partner’s income was over £50,000 but yours was less, your partner needs to declare the Child Benefit on their tax return.”
However, Mr Butler noted: “It’s important to be aware that as of the current tax year, the threshold rises to £60,000 – but for this return, it’s still £50,000.”
The deadline to file a self-assessment tax return for the 2023/24 tax year falls at midnight on January 31.
At the start of January, as many as 5.4 million people were still yet to complete their returns – but missing the deadline could be costly.
A late filing penalty of £100 is applied if the initial deadline is missed. After three months, additional daily penalties of £10 per day are applied, up to a maximum of £900.
After six months, a further penalty of 5% of the tax due or £300 is applied, whichever is greater. After 12 months, another 5% or £300 charge will be applied, whichever is greater.
Mr Butler said: “Tax returns aren’t known for being fun, but it’s important to understand what’s required and file it on time to avoid any penalties which can be costly – last year, HMRC collected a record £220million in late-filing fines.”
According to HMRC, the “quickest and easiest” way to complete a tax return and pay any tax owed is to use HMRC’s online services. Visit the GOV.UK website and search ‘Self Assessment’ to get started.
Once a tax return is filed, payments can be made quickly and securely through the HMRC app.
Customers can set up notifications in the app to remind them when payments are due, so they don’t need to worry about missing deadlines or penalties. Information about the different ways to pay can be found on GOV.UK .
