UK Tax Deadlines for 2024 - Essential Dates and Tips for a Stress-Free Tax Season

The Importance of Timely Tax Filing

• Timely filing prevents costly penalties and interest charges that accumulate with delays.
• Filing early allows you to budget accurately for any tax owed, reducing financial stress and avoiding last-minute payments.
• On-time filing can enable tax payments via PAYE, spreading costs over 12 months instead of a single lump sum.
• Consistently meeting deadlines builds a favorable record with HMRC, offering peace of mind and potential support in future situations.

Key Tax Deadlines for the 2024 Tax Year

1. 31 January 2024 – Online Tax Returns and First Payment on Account Due

The first significant deadline of the tax year is 31 January. This is the final date by which HMRC must receive online tax returns for the 2022-23 tax year. If you are self-employed or have additional taxable income, this date marks the deadline for both filing your tax return and making the first payment on account for the 2023-24 tax year. This payment on account is essentially an advance towards your estimated tax bill, based on your previous year's earnings.

If you still have outstanding tax owed from the 2022-23 tax year, this is also the date for a "balancing payment" to settle any remaining liability. Missing this deadline incurs interest charges and may subject you to penalties. Note that if HMRC issued you a notice to file a tax return after 31 October 2023, your filing deadline may be extended to three months from the date of issue.

Interest and Penalties: Failing to pay on time results in interest charges, calculated at the Bank of England base rate plus 2.5%. Given recent base rate increases, this interest rate has been climbing since late 2021.

2. 6 April 2024 – Start of the New Tax Year

The UK tax year begins on 6 April and runs until 5 April the following year. For the 2024-25 tax year, any changes to personal tax allowances and rates outlined in the Spring Budget will take effect from this date. Typically, HMRC updates taxpayers with a new tax code at the start of each tax year, indicating the amount of tax-free income they are entitled to. It’s essential to review your tax code to avoid overpaying for underpaying taxes.

If you have all required information for the 2023-24 tax year, you can submit your tax return as early as this date, even though the final deadline is in January 2025.

3. 31 July 2024 – Second Payment on Account Due

For those required to make payments on account, the second installment is due by 31 July. This payment, based on an estimate of your previous year’s income, further reduces the balance you’ll owe in January. The purpose of payments on account is to spread tax liabilities across the year, preventing the need for a large lump-sum payment at the start of the following year.

4. 5 October 2024 – Deadline to Register for Self-Assessment

New to self-assessment? If you've never submitted a self-assessment tax return before, you need to register with HMRC by 5 October 2024. This deadline applies if you are newly self-employed or have additional taxable income that isn’t handled through PAYE (Pay As You Earn). After registering, HMRC will issue your Unique Taxpayer Reference (UTR), enabling you to file your first tax return.

Registration requirements differ based on your employment status:

• Newly self-employed: Complete the registration for a UTR and activation code.
• Self-employed but previously filed: Fill out the CWF1 form to notify HMRC.
• Non-self-employed but with taxable income outside PAYE: Use the SA1 form to report this income.

5. 31 October 2024 – Paper Tax Returns Due

For those opting to submit a paper tax return, the deadline is 31 October. Note that this deadline comes well in advance of the online filing date (31 January 2025), and failure to meet it can incur penalties. However, if you miss this paper filing deadline, you still have time to file an online tax return instead. As HMRC gradually phases out paper returns, familiarising yourself with the online system is advantageous.

6. 30 December 2024 – Option to Pay via PAYE

If you have earnings taxed under PAYE, you may opt to have any additional tax liabilities under £3,000 collected through your tax code. To qualify, you must submit your online tax return by 30 December. Choosing this option spreads your tax liability across the year, similar to PAYE deductions, making it easier to manage your cash flow.

7. 31 January 2025 – Final Filing Deadline and Balancing Payment Due

The last major deadline is 31 January 2025, by which all digital self-assessment tax returns for the 2023-24 tax year are due. This is also the deadline for any balancing payments on the account, settling any remaining tax owed after previous payments. Filing late can result in significant penalties, so preparing well in advance is advised.

Consequences of Missing Tax Deadlines

HMRC imposes strict penalties for late filing and payment, which escalate over time. Here’s what to expect if you miss a deadline:

• One Day Late: A flat fine of £100, even if no tax is due.
• Three Months Late: A daily penalty of £10, capped at 90 days, or a maximum of £1,000.
• Six Months Late: An additional penalty of £300 or 5% of the tax due (whichever is higher).
• Twelve Months Late: A further £300 or another 5% of the tax owed, depending on which is greater.

Beyond these penalties, late payments are also subject to interest charges. In the most severe cases of non-compliance, fines can be as high as 100% of the tax due.

Tips for Stress-Free Tax Filing

1. Organise Early: Avoid the last-minute rush by organising all necessary paperwork—income statements, expense records, and bank statements—well before deadlines.
2. Consider Online Filing: HMRC’s online filing system is faster, with real-time calculations, and it confirms submission immediately. Plus, the digital deadline (31 January) gives extra time compared to paper returns.
3. Use Tax Software: Reliable tax software can help streamline calculations, identify deductions, and reduce errors. For example, tools like GoSimpleTax are designed to simplify the self-assessment process and ensure compliance with HMRC requirements.
4. Understand Penalties: Familiarise yourself with penalty rules to avoid costly surprises. Knowing the specific consequences can help prioritise filing and payment on time.
5. Seek Professional Help if Needed: If your tax situation is complex, consulting an accountant can help ensure accuracy and potentially reduce your tax burden by identifying allowable deductions.
6. Opt into PAYE for Additional Payments: If eligible, spreading tax payments over a year through PAYE can alleviate the financial strain of a single large payment. This is particularly useful for individuals with additional, modest tax liabilities.
7. File Early Where Possible: Filing as soon as the tax year ends in April allows you to know your tax liability in advance, so you can plan payments and avoid any last-minute pressure.

How Affotax Can Help You Navigate Tax Season

At Affotax, we provide expert tax services to make tax season as smooth as possible. Our team offers advice, support, and resources to ensure compliance and minimise your tax liability. From registration support for first-time self-assessment filers to ongoing management of complex tax needs, we help clients stay compliant and avoid penalties.

Why Choose Affotax?

• Accuracy and Efficiency: Our experienced team stays up to date on the latest tax legislation, so you don’t have to worry about missing new developments or deadlines.
• Custom Solutions: We offer personalised services, tailored to individual or business needs, including income from various sources or complex financial situations.
• Time Savings: With Affotax handling your tax matters, you can focus on what matters most—running your business or managing your finances.

Final Thoughts

Understanding and adhering to tax deadlines is crucial for UK taxpayers. By staying aware of key dates, preparing early, and potentially seeking professional support, you can avoid penalties and make tax season a more manageable part of your year. Affotax is here to help you every step of the way, from understanding deadlines to ensuring a seamless filing process.

For personalised support or to learn more about how Affotax can assist you, get in touch with our team today. We’re committed to helping you stay compliant, reduce your tax burden, and navigate the complexities of the UK tax system with ease.