Self-assessment tax return deadline approaches

More than 10 million tax payers in the UK are required to complete and return their self-assessment tax filing by the end of the month, and almost four million have yet to do so, according to The Guardian.

This time last year, 890,000 taxpayers missed the end of January deadline and incurred a fine of £100 and faced further penalties if they continued to delay.

Online returns

In fact, the process is relatively straightforward for anyone who is used to filling in any online forms.

An “activation code” from HM Revenue and Customs (HMRC) is all that is needed to start the process, and once requested, takes about seven working days to arrive in the post. This means that anyone who needs a code should apply for one before Thursday 21 January.

Generally speaking, anyone who is self-employed or has a PAYE job but earns money from another source will need to fill in a self-assessment return.

This year, individuals who claimed child benefit and whose income or that of their partner's is more than £50,000 must do a self-assessment. There are also some other requirements for people with a certain level of income from savings or investments.

Tax relief

Because anyone doing a self-assessment return can also claim tax relief against a number of expenses and deductions, it can be beneficial for many to have an accountant prepare the return and even file it on their behalf.

However, for someone with basic and straightforward accounts, there is also plenty of help and advice available online from HMRC that can guide tax payers through the process.