Thousands and thousands of UK taxpayers stay liable to a £100 positive in the event that they fail to file their on-line self-assessment tax returns by midnight tonight, in keeping with HM Income & Customs (HMRC).
The warning comes as greater than three million individuals have but to submit their returns for the 2023-24 tax yr, prompting HMRC to advise last-minute filers to go surfing for assist and to make use of the HMRC app to pay any excellent steadiness as soon as their returns are finalised.
In a big shift this yr, platforms equivalent to eBay and Vinted should share information with HMRC on sellers who meet particular thresholds—promoting 30 or extra gadgets or incomes at the least £1,700. This data might be matched towards particular person tax returns, though HMRC emphasises that there is no such thing as a new tax cost for individuals merely promoting private gadgets often.
“We cannot be clearer—if you are not trading and just occasionally sell unwanted items online, there is no tax due,” HMRC mentioned.
Anybody who misses the midnight submitting deadline will incur a right away £100 penalty, even when they don’t have any tax to pay. After three months, every day fines of £10 per day (as much as a most of £900) apply, with additional penalties after six and twelve months, plus added curiosity on any overdue quantity.
Round 8.6 million individuals have already filed self-assessment returns, which embody earnings from small companies, freelance work, and extra earnings streams. Nonetheless, accountant Benedicta Egbeme from BeniRatio Funds cautions that people who earn greater than £1,000 via aspect companies—equivalent to on-line reselling or offering ad-hoc providers—should register for self-assessment.
Whereas the brand new reporting necessities don’t create a recent tax cost, they purpose to make sure that these genuinely buying and selling or providing providers for revenue are appropriately reporting their earnings. HMRC advises that potential sellers in danger embody these shopping for items for resale, manufacturing gadgets to promote, providing supply driver providers, or letting out properties for vacation leases.
