More than 10,000 file self-assessment over Christmas bank holidays
This tax season, more than 10,000 taxpayers submitted their online returns on Christmas Day and Boxing Day, ahead of the January 31 deadline.
Figures released by HMRC show that 2,590 people filed their online self-assessment returns on Christmas Day and a whopping 7,655 submitted on Boxing Day.
With a further 6,033 returns submitted on Christmas Eve, the total number of tax returns submitted over the festive period beats last year’s figure of 14,000 filed over the three days.
HMRC released these figures as it urged taxpayers not to ignore the ‘little niggle’ that tax returns can cause at this time of year.
Angela MacDonald, HMRC director general for customer services, said: “It's easy to put off doing your Self Assessment, but that tax 'niggle' means it's always on our customers' minds.
“With the January 31 deadline edging closer we want to help remind our customers to get it done so they can alleviate that feeling, ensuring they can relax and not have to worry about doing their tax return.”
In an accompanying billboard advertising campaign, HMRC used ducks from a bird sanctuary to ‘peck away’ at taxpayers as they relax at home.
If you don’t submit an online self-assessment before the January 31 deadline then you will automatically face a £100 fine. This fine will increase the longer you leave it after the deadline.
HMRC is planning to introduce a driving-style points system for late payers, which could punish repeat offenders.
This system is likely to be introduced alongside Making Tax Digital (MTD) proposals in 2019.
Submitting a tax return with cloud accountancy software
Cloud-based accountancy software like Xero and FreeAgent help self-employed professionals and small business owners submit self-assessment returns quickly and accurately.
Throughout the year, the software gathers information about your income and expenditure and uses it to calculate your tax liability in no time at all. Some systems will automatically complete up to 90% of the self-employment form.
Xero and FreeAgent also allow sole traders and directors of limited companies to submit their returns directly to HMRC, from within the platform interface.
Although software can record your tax data and put it in the right box, it can’t interpret and let you know what you may have missed. Unless your return is simple, a quick check by an accountant could save you a lot of money.
The ability to file tax returns quickly and accurately will become even more valuable as the tax authority begins to roll out its Making Tax Digital proposals.
Under MTD, many sole traders and limited company directors could have to file updated tax returns four times per year.
Using a cloud accountancy platform with an accountancy firm like CloudAccountant.co.uk allows you to get extra support when you submit your self-assessment tax return.
If you need any extra help submitting your tax return before the January 31 deadline, speak to a member of our CloudAccountant.co.uk accountancy team to arrange a consultation today. Call: 0808 281 0303.