Tax returns through self-assessment is a system used by HM Revenue and Customs (HMRC) to collect Income Tax. In many instances, Britons are required to be forthcoming about their income so they can be taxed by the government accordingly. In the coming months, there are several important deadlines to bear in mind, with the first occurring in just a week’s time.
“If you’ve received a ‘notice to file’ from HMRC, it’s important to make sure you action this as it creates a legal obligation, and failure to do so may land you with a hefty penalty.
“That starts at £100 when the return is late, but can increase dramatically when the return is 90 days late since daily penalties can apply.”
Mr Parkes urged Britons to take caution when filing as mistakes can often be made, and so taking action ahead of time can ensure the tax return is amply checked.
Tax returns can be sent once a person has registered, and this must be done through the correct method – either online, paper, or through commercial software.
The bill must then be met by the specified deadline.
Sarah Coles, personal finance analyst at Hargreaves Lansdown, also commented ahead of the deadline.
She said: “There’s never a good time for a tax deadline, but at the end of almost a year of hell – when government support for the self-employed has dwindled to 20 percent of your usual profits at most – there’s never been a worse time.
“So it’s worth making a plan for the tax deadline right now, to help you get through it all in one piece.
“The paper tax deadline is a brilliant opportunity to get started – because it gives you time to deal with all the challenges posed this year.”
Ms Coles has directed Britons to take particular steps going forward, if the paper tax deadline does not apply to them.
Firstly, finding any lost paperwork, or re-ordering it should be a matter of priority to ensure Britons can claim all they can.
For those who find the process difficult, an accountant can be employed to put in the hard work.
Britons who cannot afford to pay the full debt on time can think about what they can afford, and then potentially set up deferred payments and a budget to help.
And for people who can afford to pay, starting early could help them understand how to save time and money on the next occasion.