Martin Lewis advises millions of late Self Assessment filers on how to minimize penalties and interest charges.
Martin Lewis, the renowned consumer champion, has shared a valuable tip for millions of individuals facing the imminent Self Assessment tax return deadline of January 31st. Lewis revealed on the latest episode of his Martin Lewis Money Show Live that a staggering 3.8 million people have yet to file their tax return s for the 2023/24 financial year, according to data from HM Revenue and Customs ( HMRC ).
He emphasized the urgency of filing on time, warning that late submissions incur an initial penalty of £100, followed by interest charges on any outstanding balance. However, Lewis offered a practical solution to mitigate these financial burdens. He explained that filing as soon as possible and paying the estimated tax amount due would minimize interest charges, as interest would only be applied to the difference between the initial payment and the final tax bill. Lewis provided an illustrative example: if someone estimates their tax liability at £10,000 and pays that amount before the deadline, but their actual tax bill turns out to be £11,000, they would only be charged interest on the £1,000 difference, at a rate of 7.25 percent. Furthermore, Lewis urged individuals who anticipate difficulty meeting their tax obligations to contact HMRC promptly for support and guidance.He stressed that while filing a complete and accurate tax return is the ideal scenario, paying the estimated tax amount upfront can significantly reduce potential interest charges. HMRC also acknowledges extenuating circumstances and offers leniency to taxpayers with reasonable excuses for late filing, provided they communicate with them before the January 31st deadline. Failure to meet the tax return deadline can result in a series of penalties, including an initial £100 fine, followed by additional penalties of 5 percent of the outstanding tax at 30 days, 6 months, and 12 months. In addition to these penalties, interest will accrue on any unpaid tax amounts after the deadline. Lewis encourages individuals to proactively manage their tax affairs and seek assistance from HMRC if needed. He emphasizes the importance of staying informed about tax deadlines and obligations to avoid unnecessary financial penalties
TAX UK HMRC MARTIN LEWIS SELF ASSESSMENT MONEY SAVING TAX RETURN DEADLINE INTEREST CHARGES PENALTIES
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