Millions of workers are being urged to pay their taxes to HM Revenue and Customs (HMRC) or pay sizable fines.
Self-employed taxpayers are required to file their tax returns by midnight on January 31 and pay any taxes owed to the tax body.
Failure to do so could result in fines, which start at £100 if their return is three weeks, but could result in even greater penalties.
Any late payments to HMRC receive interest of 7.75 pecent which is higher than the interest paid by HMRC on money owed back to individuals who are due tax repayments.
Anyone who earned more than £1,000 through self-employment, whether freelancing or a side hustle, between April 5, 2022 to April 6, 2023, need to file a tax return.
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Those who are in a business partnership with a taxable income of more than £100,000 and anyone due to pay the High Income Child Benefit Charge need to do so.
Seb Maley, CEO of tax insurance provider, Qdos, commented on the approaching self-assessment deadline:
He explained: “It’s that time of year again. If last year is anything to go by, around 12 million people in the UK will be preparing to file tax returns with HMRC – from full-time freelancers and business owners to those with second incomes, such as side hustles.
“While HMRC will issue a £100 off the bat to those who miss the midnight deadline on 31st January, the rising interest rates slapped on top of late payments – currently 7.76 percent – can accumulate very quickly.
“Getting your tax return right is just as important as filing and paying it by the deadline. HMRC will have no hesitation in launching tax investigations if it spots a mistake.
“Given the number of tax enquiries jumped by as much as 20 percent in the past two years – to nearly 300,000 a year – compliance and protection are also essential.”
Side hustlers who need support to complete their return for the 2022 to 2023 tax year can access the online help available on GOV.UK.
It should be noted that completing a tax return sooner will mean that self-employed people will be able to find out what they owe and work out how they can pay between now and the deadline.
Completing a tax return sooner means that customers can find out what they owe and can work out how to pay between now and the deadline.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “My advice for anyone completing their Self Assessment is to get prepared and, if they need extra support, to access HMRC’s free online help and resources.”
