HMRC phone lines stay open as self-assessment tax deadline looms

As the clock ticks down to the crucial January 31st self-assessment tax deadline, HM Revenue and Customs (HMRC) is significantly bolstering its support services, extending webchat availability and opening dedicated phone lines this Saturday. This eleventh-hour push aims to assist the millions of individuals, primarily self-employed or those with diverse income streams, who are required to file their 2023-2024 tax returns online. The deadline, falling on the last day of January, represents the final opportunity for taxpayers to submit their declarations and pay any outstanding taxes for the financial year that concluded on April 5, 2024.

The UK’s tax authority faces its annual challenge of managing a surge in last-minute filers. Despite encouraging early submissions, a significant proportion of taxpayers invariably leave their obligations until the final hours. To mitigate potential bottlenecks and ensure accessibility, HMRC has strategically scaled up its Saturday support. This proactive measure comes in the wake of past criticism regarding lengthy helpline waiting times, particularly during peak periods. Last year, a staggering 1.1 million people missed the cut-off, underscoring the persistent issue of late submissions. This year, while over 10 million people have already completed their latest tax return, hundreds of thousands are still expected to file on the final day, highlighting the critical need for readily available assistance.

For those scrambling to meet the deadline, HMRC emphasizes that its digital services remain the fastest and most efficient way to access support. The webchat service has seen its capacity extended tenfold for Saturday, providing a crucial lifeline for taxpayers seeking quick answers to common queries. Additionally, the digital assistant service is operational throughout the day, offering instant responses to a wide range of questions. Recognizing that some complex issues require human interaction, the telephone helpline, typically closed on weekends, will be open from 09:00 GMT to 16:00 GMT specifically for self-assessment queries. While wait times are anticipated to be longer than usual due to the intense demand, this dedicated service offers a vital avenue for those needing to speak directly with an HMRC advisor.

The self-assessment system applies to a broad spectrum of individuals whose tax affairs are not fully managed through the Pay As You Earn (PAYE) system, which automatically deducts tax from wages. This includes, but is not limited to, freelancers, contractors, sole traders, and those who operate their own businesses. Beyond the self-employed, individuals with income from letting out a property or land, earning more than £1,000 from these sources in the 2023-2024 financial year, are also required to file. Other categories include those with significant savings interest, capital gains from selling assets, foreign income, or those receiving income from trusts. Even directors of limited companies, ministers of religion, and individuals with complex tax affairs, such as those needing to claim specific tax reliefs, often fall under the self-assessment umbrella.

It’s important to note that changes have been introduced for some groups. For instance, individuals whose only reason for filing a self-assessment return was their high income (exceeding £150,000) may no longer need to if their tax affairs are otherwise straightforward and managed through PAYE. Similarly, those affected by the High Income Child Benefit Charge (HICBC) now have the option to pay the charge directly through PAYE, potentially removing their requirement to file a full self-assessment return if this was their sole reason. However, taxpayers must proactively arrange this with HMRC.

A significant concern for many is the potential for missing out on valuable tax reliefs. Sir Steve Webb, a partner at consultancy LCP and former pensions minister, has estimated that around 800,000 higher or additional rate taxpayers could be inadvertently forfeiting additional tax relief by failing to accurately declare contributions to personal pensions or other "relief at source" schemes. These reliefs can significantly reduce a taxpayer’s overall bill, making a comprehensive and accurate return crucial. Other common reliefs include employment expenses not reimbursed by an employer, professional subscriptions, and Gift Aid payments. Ensuring all eligible reliefs are claimed can lead to substantial savings, making the effort to file a complete return worthwhile.

The consequences of failing to meet the January 31st deadline are stringent and can quickly escalate. An automatic £100 penalty is levied immediately for late filing, even if no tax is owed or if the tax owed is paid on time. This initial fine serves as a stark reminder of the importance of compliance. Should the return remain outstanding, further penalties accrue: daily penalties of £10 are charged after three months, up to a maximum of £900. If the return is still not filed after six months, an additional penalty of 5% of the tax due or £300 (whichever is greater) is applied. This is repeated after 12 months, meaning a return submitted a year late could incur penalties of at least £1,600, in addition to interest on any unpaid tax.

While the rules are strict, HMRC does consider "reasonable excuses" for late filing. These can include severe illness, the death of a close family member shortly before the deadline, an unexpected stay in hospital, or an unforeseen event such as a fire or flood that prevents access to records. However, excuses such as being "up a mountain," "yachting around the world," or simply forgetting are typically not accepted. It is imperative for taxpayers facing genuine difficulties to communicate proactively with HMRC, providing evidence where possible, to avoid or appeal penalties.

Beyond filing the return, the other half of the battle is paying any tax owed for the 2023-2024 tax year. This payment is also due by January 31st. "Filing the return is only half the battle – you must also pay any tax owed for the 2023-24 tax year by January 31 which will require sufficient cleared funds available in your bank account ahead of the deadline," advises Alice Haine, personal finance analyst at Bestinvest. Taxpayers can make payments via direct debit, bank transfer, debit card, or even cheque (though cheques require sufficient time to clear).

For those who find themselves unable to pay their tax bill in full by the deadline, HMRC offers a "Time to Pay" arrangement. This allows eligible taxpayers to spread their payments over a longer period. To qualify, individuals must generally owe less than £30,000, have filed their tax return, and contact HMRC within 60 days of the payment deadline. Setting up a "Time to Pay" arrangement online can be a crucial step in avoiding further penalties and interest, although interest will still be charged on the outstanding amount. It underscores HMRC’s flexibility in managing genuine financial hardship, provided taxpayers engage with the system.

Amidst the deadline rush, taxpayers must also remain vigilant against scams. Criminals frequently exploit such periods, attempting to dupe taxpayers through various fraudulent schemes. These often involve phishing emails, spoof phone calls, or text messages purporting to be from HMRC. Fraudsters might threaten individuals with immediate arrest or legal action over an "unpaid tax bill," or they may tempt them with offers of "fake rebates." HMRC explicitly states it will never demand payment via text message or email, nor will it threaten immediate arrest. Taxpayers are advised to report suspicious communications, delete them, and never click on any links or provide personal details. Always verify communications directly with HMRC using official contact channels if in doubt.

Looking ahead, significant changes are on the horizon with the rollout of Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA). From April 2026, taxpayers with gross income from self-employment or rental property exceeding £50,000 will need to comply with MTD rules. This will fundamentally alter how these individuals manage their tax affairs, replacing the traditional annual self-assessment process with a more digitized, frequent reporting system. These taxpayers will be required to keep digital records using HMRC-approved software and submit quarterly summaries of their income and expenses to HMRC. The threshold for MTD compliance will subsequently drop to £30,000 from April 2027, and then to £20,000 from April 2028, progressively bringing more taxpayers into the digital fold.

The introduction of MTD represents the biggest transformation of the tax system since self-assessment itself was introduced. It aims to modernize tax administration, reduce errors, and provide taxpayers with a clearer, more real-time view of their tax position. However, it also demands preparation. "Making Tax Digital is the biggest tax change since self assessment and, with just over two months to go, time is running out to get ready," warns Victoria Todd, of the Low Incomes Tax Reform Group (LITRG). LITRG has produced a comprehensive guide for those navigating these upcoming changes, emphasizing the need for taxpayers to understand the requirements, invest in compatible software, and adapt their record-keeping practices well in advance. For the current deadline, however, the focus remains firmly on submitting the 2023-2024 self-assessment return, leveraging HMRC’s extended support to avoid penalties and ensure compliance.