The HMRC have just released a statement saying that 800,000 self employed people missed the self assessment tax deadline this year.
That is 1 in 14 people who just couldn’t be bothered to get their tax return in on time, or perhaps they didn’t understand how? Who knows exactly, but what I do know is that it’s now easier than ever before to do your tax.
You don’t need to get any forms or send anything through the post. Everything can be done online at the HMRC website, and in the next few years they are going to be making the process even easier due to their “making tax digital” project which introduces a quarterly tax return.
Despite 800,000 people missing the tax deadline, some of whom were contractors by the way, HMRC said in their statement that things are getting better. Last year it was 8% who missed the deadline, while this year it was only 7%.
So that is 10.8 million people who did manage to get it in on time. I’m sure that many of those used a contractor accountant to get everything ready for them and even send the tax return on their behalf. It is the smart way to do things if you ask me.
Sure, hiring an accountant does cost you money upfront, but when you consider how much they save you in the long run then it’s a smart investment.
Not only that, but contractors who miss the tax deadline instantly get a 100 pound fine, which can become even more if the person still doesn’t send off their forms to HMRC.
What is interesting is that out of the 10.8 million people who did send in their tax return, 9.57 million did so online.
It just goes to show that many of our nations self employed are becoming more comfortable doing important tasks such as a tax return online, and this is one of the reasons why I think making tax digital will be a success when introduced in 2020.
Of course, it won’t be smooth sailing right from the start, and I’m sure that many people will take a while to get to grips with doing a tax return 4 times a year, but once it becomes the norm then it should make everything easier, to the point where 800,000 are not missing the tax deadline…although let’s wait to see if this happens or not.
As I’ve reported on before, there are just some contractors who find any excuse not to send in their tax returns, including excuses like the dog ate it and I don’t have the internet. Just what are some people thinking? The HMRC are having none of it though.
So the message here is clear…get your tax return in on time and don’t be one of the 800,000 who got a 100 pound fine recently.