Do you leave your tax return to the last minute? At Gravita, we love a statistic, and in 2024 more than 12 million of us were expected to file a tax return in the UK.
HMRC estimated that 1.1 million missed the deadline. And we imagine for the majority, this was not intentional.
In addition, the tax return forms were available to download, (after HMRC previously mentioned they were removing the option). The department also wrote to the 335,000 taxpayers that usually file paper returns to encourage them to file online. Whilst we understand that some people just prefer to do things offline, by April 2026, when the first phase of Making Tax Digital for Income Tax is rolled out, many of those won’t have a choice and will need to digitalise their processes and file a tax return online.
At Gravita, our hard-working private client department ensure that thousands of our clients submit their tax returns on time, and with the correct information, each year. Anybody who submits a tax return will know that HMRC requires a lot of information relating to the previous tax year including accounts, invoices, receipts, other records of income, relevant expenses, contributions to pensions, contributions to charities, P60s, P45s and so on! Many of us fall into the trap of thinking, ‘it’s January, I must dig out the information required to prepare and submit my return’. As much as we encourage our clients to engage with us as early as possible in the process, our tax return department do receive a lot of panicked calls throughout January from clients who aren’t able to easily find all the information they need. Many forget that you can actually submit your tax return at any point throughout the year. You’ll then establish what you owe to HMRC and will have a longer period in which to prepare for that payment. And of course, we will remind you in January that it needs to be paid and organise that for you. Perhaps something to consider for a new year’s resolution.
So, this year we recommend using December and the holiday period to dig out the crucial information required and send it to us in good time. Not only will this relieve additional stress in January, but also provides enough time for our team to come back to you with any potential queries.
If you do your tax return yourself, remember that HMRC’s systems are slower in January. Their call centre is also exceptionally busy in the event you have questions. So why not start the new year with this out of the way and behind you?
It’s also worth bearing in mind that if you are going to submit a tax return for the first time, HMRC will issue you with a UTR number: your ‘Unique Taxpayer Reference’ number. Rather like your National Insurance number, this will stay with you for life. You will need to register for and receive your UTR number before you submit your tax return. This can take weeks to come through, especially at the busiest time of the year, and is another reason why you should start thinking about self-assessment now, rather than leaving it to the last minute.
Failure to submit your tax return on time will result in penalties. If you’re thinking about enlisting the services of an accountant to help you through this process, do also remember that January is the busiest time for all tax teams and again it’s important to start those conversations as early as possible.
And just one more stat: 33,000 customers left it until the last hour on the 31st January to file their returns. Don’t be late!
What next?
So, start to pull together all the information from 1st April 2023 to 31st March 2024 and get that tax return submitted in good time. If you need any help, please contact Michaela Lamb, or a member of the Gravita tax team, who will be able to help you.
