Self-assessment tax return deadline: everything you need to know

The annual online self-assessment tax return deadline is rapidly approaching. For the 2024/25 tax year, this crucial deadline falls on 31st January 2025. If you are self-employed, a freelancer, or have other sources of untaxed income, such as rental income or capital gains, it is important that you file your online tax return by this date. 

Failure to meet the self-assessment tax return deadline can result in significant financial penalties, including hefty fines and interest charges. To avoid these penalties and ensure compliance with HMRC regulations, it is crucial to understand your tax obligations, gather all necessary documentation, and accurately complete your tax return. 

In this blog post, we will delve deeper into the intricacies of self-assessment tax returns, including who needs to file, key deadlines, potential penalties, and tips for a smooth filing process. We will also explore how One Two One Accounts can assist you in navigating the complexities of self-assessment and ensuring your tax affairs are in order.

Who needs to file a self-assessment tax return?

HM Revenue and Customs (HMRC) has a set of criteria to determine who needs to complete a self-assessment tax return. If you meet any of the following criteria, you should register for self-assessment even if HMRC hasn’t directly contacted you. Not registering can result in a “failure to notify penalty.” 

Common situations requiring self-assessment include:

• Self-employment: Self-employed individuals, regardless of income level, must file a return. This includes sole traders and partners in a business. However, if your self-employment income, before expenses, falls within the annual £1,000 trading allowance, you may not need to register. 

• Property income: Landlords with rental income exceeding certain limits need to file a return. You can find more information on self-assessment criteria for property income on the HMRC website. 

• Employment expenses: If you have employment expenses exceeding £2,500 in a year and need to claim tax relief for them, you will need to file a self-assessment return. 

• Capital gains tax: If you have capital gains tax to pay that hasn’t been collected in-year through other means, you will need to file a return. 

• Other income: This includes income from a trust or estate, foreign income (excluding certain dividends), income from UK savings and investments exceeding £10,000 (excluding ISAs), dividend income exceeding £10,000 (excluding ISAs), or any other untaxed income exceeding £2,500. 

• High income: Individuals with a total taxable income of £150,000 or more before tax (as of the 2024/25 tax year) or those needing to pay the high-income child benefit charge must also file a self-assessment return. 

Even if you fall outside these criteria, you may still need to file a return if HMRC has directly requested one for a specific year. If you believe this request is a mistake, you can contact HMRC to enquire about cancelling the filing requirement. However, if they do not cancel it, you must still file a return to avoid late filing penalties. 

Unsure if you need to file? The GOV.UK website offers a handy tool that asks you a series of questions and determines if you fall within HMRC’s self-assessment criteria. We recommend using this tool and keeping a copy of your answers and the result for your records.

Key deadlines and penalties

To avoid penalties, it is essential to adhere to the key deadlines: 

The online self-assessment tax return deadline for the 2024/25 tax year is the 31st of January 2025 at 11:59 pm. Any outstanding tax owed for this tax year must also be paid by this date. HMRC imposes penalties for late filing and late payment of taxes: 

• Late filing penalties: A fixed penalty of £100 is imposed for filing your return late. If you continue to delay filing your return after the initial fixed penalty, you may be charged a daily penalty of £10, up to a maximum of £900. Additionally, HMRC may impose further penalties of 5% of the tax due, up to a maximum of £300. 
• Late payment penalties: A daily interest charge of 7.75% is applied to any unpaid tax.

Tips for avoiding penalties

To ensure timely and accurate self-assessment, consider the following tips: 

• File your return on time: Aim to file well in advance of the deadline to avoid last-minute rush and potential errors. 

• Pay your tax bill in full: Ensure all taxes due are paid by the deadline to avoid interest charges. 

• Keep accurate records: Maintain detailed records of income and expenses to support your tax return. 

• Seek professional advice: If you are unsure about any aspect of your tax return or have complex financial circumstances, consult with a qualified tax advisor. 

By understanding your obligations, adhering to deadlines, and seeking professional advice when needed, you can navigate the self-assessment process successfully and avoid unnecessary penalties.

How One Two One Accounts can help

At One Two One Accounts, we are dedicated to providing comprehensive tax services to individuals and businesses alike. Our team of experienced tax professionals are committed to helping you navigate the complexities of self-assessment and tax compliance. 

We specialise in a range of services, including self-assessment tax returns, limited company accounts, payroll services, bookkeeping and accounting, and tax planning and advice. Whether you are self-employed, a small business owner, or a large corporation, we have the expertise to handle your tax needs. 

Our team stays up to date with the latest tax laws and regulations, ensuring that your tax affairs are always in compliance. We pride ourselves on our accuracy, timeliness, and tailored approach. By entrusting your tax matters to One Two One Accounts, you can rest assured that your financial future is secure. 

Contact us today to book a consultation and let us handle the rest.