Tax Return Deadline 2024: What You Need to Know
January does not just bring a new year; it is also the month when your tax return is due, with the tax return deadline 2024 being midnight on 31st January. This annual obligation is essential to ensure you're paying the right amount of tax based on your financial activities throughout the year. However, it can cause a little stress and confusion.
In this blog, we're offering some help and guidance. Discover the vital information you need to know about the tax return deadline in 2024 and how you can find support in getting your submission correct.
What Is a Tax Return?
A tax return, specifically known as a "Self Assessment tax return," is a mandatory financial document that individuals, business owners, and other taxpayers in the United Kingdom are required to complete and submit to Her Majesty's Revenue and Customs (HMRC). It serves as a comprehensive declaration of your income, expenses, and other financial details, allowing HMRC to determine the appropriate amount of tax you owe or are owed for a specific tax year.
For the last tax year, from 6th April 2022 to 5th April 2023, the deadline for filing your tax return online and paying the tax you owe is midnight on 31st January 2024. Missing this deadline can result in penalties, interest charges, and unnecessary stress.
Who Needs to File a Tax Return?
Before delving into the details of the tax return process, it's crucial to determine whether you or your business are required to file one. In the UK, the following groups typically need to submit tax returns:
Self-Employed Individuals: If you are self-employed as a sole trader or in a partnership, you must file a tax return.
Limited Companies: Company directors and shareholders must file a tax return for their personal income.
Landlords: Individuals earning rental income from properties must declare it in their tax returns.
High Earners: Individuals earning over £100,000 annually should file a tax return to ensure they are paying the correct amount of tax. This threshold is being updated for the tax year 2023/24.
Investors and Pensioners: People with significant investments, dividends, or savings income or who are receiving a state pension might need to file a return.
Preparing for the Tax Return Deadline
Preparing for the tax return deadline can be a time-consuming process, but with proper planning and organisation, you can make it more manageable. Here are some steps you can take:
1) Gather Financial Documents: Ensure you have all the necessary financial documents, including invoices, receipts, and bank statements.
2) Review Income and Expenses: Accurately calculate your income and deductible expenses to determine your taxable profit.
3)Claim Deductions and Allowances: Be aware of available deductions and tax allowances to reduce your tax liability.
4) Consider Tax-Relief Schemes: Investigate whether you are eligible for any tax relief schemes that can lower your tax bill.
5) File Online: HMRC strongly encourages online filing, as it provides ample time for corrections and is generally more convenient.
6) Seek Professional Assistance: Enlisting the services of an experienced accountancy firm can streamline the process, reduce errors, and ensure compliance with tax laws.
Paying Your Tax Bill
Once you've successfully completed your tax return and submitted it to HMRC, the next crucial step is paying any tax liability that may be due. Here's what you need to know about settling your tax bill:
Payment Due Date
The deadline for paying your tax bill is the same as for filing your tax return: midnight on 31st January 2024 for the tax year 2022/23. Be aware that you may also be required to make a 'payment on account' as an advance payment towards next year's tax bill.
How to Pay
HMRC offers various payment methods to make settling your tax bill as convenient as possible. These include online banking, telephone banking, debit or credit card, and CHAPS payment.
Late Payment Penalties
Failing to pay your tax bill on time can result in penalties and interest charges. HMRC will issue an automatic penalty if your payment is late. The penalty amount will depend on how much you owe and how late the payment is.
How We Can Help
At Keith Graham Chartered Accountants, we specialise in providing tax and accounts support for businesses and individuals. Our team of dedicated professionals understands the intricacies of UK tax laws and regulations. We can help you navigate the tax return process efficiently and effectively, ensuring you meet the deadline with peace of mind.
If you have any queries about your tax obligations for the upcoming 2024 deadline, please get in touch with our team.