HMRC have contacted software developers with essential information about Self-Assessment tax returns which ICB wants to pass on in full, including links.
How do I fill in my online tax return?
Taxpayers can complete their tax return online using HMRC online services. They will be able to do this after they have registered for Self-Assessment.
Preparation is the key.
An important first step is to tailor the tax return so that completion will mean they will only be asked relevant questions. That way it won’t look too daunting and the taxpayer will not have to go through unnecessary sections of the online form.
Take it one step at a time, saving the return as each part is completed. Taxpayers can come back to it at any time to add information or correct any mistakes before submitting it by the deadline of 31 January 2025 (for tax year 2023/24).
There is plenty of help available:
- Use the built-in help function in the online form – with links to further information, question marks for help and hints on the form as a guide
- HMRC’s YouTube playlist includes short easy to follow videos that explain how to fill in your tax return
- GOV.UK has helpsheets covering tax reliefs, tax income and losses, pension tax charges and shares, securities and insurance policies. There’s also notes and form with links to guidance that covers a range of subjects.
- If using software but the taxpayer is not sure what’s supported by HMRC’s online service then see the list of Self-Assessment software suppliers that can be chosen
- HMRC also provides help through their digital assistant, chat and forums
Do I need to fill in a tax return?
Taxpayers can find this out by using HMRC’s online tool on GOV.UK where they can check if you need to complete a tax return. The tool asks a few simple questions and it will help to make the decision if there is a need to submit one (and it provides links to useful information).
There are many reasons why there may be a need to submit a tax return. In general, there is a need to complete one if there is untaxed income in the 2023/24 tax year over £1000. This will apply if the taxpayer is self-employed, a partner in a partnership business, a trustee of an estate or a minister of religion in any faith or denomination.
There may also be a need if there was the receipt of any untaxed income, say from renting out a property, from foreign income, or there is the liability to the High Income Child Benefit Charge.
It’s important taxpayers do not ignore any letters from HMRC telling them to complete a tax return, even if there is nothing to pay. If the taxpayer does not believe that there is a requirement to complete one, do not delay and let HMRC know as soon as possible, otherwise they’ll keep writing and will expect a tax return. If this is not sent then they will issue a penalty.
What happens if I can’t pay my tax bill?
If the taxpayer cannot pay, act!
They can set up a payment plan, known as a time to pay arrangement. This is where the tax liability is paid in regular instalments over an agreed period.
Taxpayers can set up a plan using HMRC’s online services if they owe less than £30,000, are within 60 days of the payment deadline and do not have any other tax debts. Doing it online means there is no need to speak to somebody at HMRC.
If there is more than £3,000 owed, there is a need to contact HMRC about setting up a tailored time to pay arrangement. Importantly, any payment plans that are set should be affordable.
Interest is payable on outstanding payments so it might be better to pay any tax liability in full, if possible.
Taxpayers should not that if paying the tax liability is always a struggle, possibly it is wise to set money aside for when the payment is due. This can be done via a Budget Payment Plan with HMRC where the taxpayer will regularly put money away which can be used to pay the next tax bill.
How do I check how much tax I owe?
HMRC works this out for based on the tax return. The amount due can be checked in the Self-Assessment section of the HMRC app and in the online service.
Payment is due by 31 January 2025.
