Thre are four key dates in July that people need to be aware of or risk missing out on cash or face a hefty fine
Brits could be caught off guard by four imminent HMRC deadlines due to hit by July 31st. Finance expert James O’Brennan from Federal Management has issued an urgent warning for Britons, as July brings more than just high pollen counts and soaring temperatures.
By the end of the month, he warns that four crucial HMRC deadlines will have passed that most simply “can’t afford to miss”, with hefty fines at stake. He stressed: “July 31st is a pivotal date for managing your taxes and maintaining your financial health. By staying proactive and informed, you can dodge unnecessary fines and ensure peace of mind. Remember, in the world of taxes, being early is always better than being late! “.
Self-Assessment Payments
The Second Payment on Account deadline is specifically targeted at the self-employed or those earning other untaxed income. The Payment on Account is essentially a pre-payment on your tax bill based on your income from the previous year, with the second instalment due by July 31st.
James emphasised that missing this deadline could result in interest charges on the amount owed, accruing from the due date until the payment is made.
Tax Credits Renewal
Brits who receive tax credits need to renew their claim before the end of the month. Failure to do so could not only disrupt your payments but also require you to repay the tax credits you’ve received since the start of the year.
Capital Gains Tax Payments for Property
James has warned that anyone who sold a property in the last tax year and owes capital gains tax may have until July 31st to settle their bill, depending on when the sale was finalised. If you’re one of those who need to meet the July 31st deadline, be aware that missing it will result in interest accruing on your payment as well as late payment penalties that could increase your original tax liability.
Submit Declarations for Offshore Assets
For those with offshore assets or investments, you have until July 31st to disclose these details to HMRC, depending on your situation. The consequences for not disclosing can be severe, ranging from financial penalties to criminal prosecution, again depending on circumstances.
James offered three simple tips to help Brits avoid penalties with HMRC: prepare all documents and reports well in advance to avoid a last-minute rush; use HMRC’s online services to make payments and submissions easier; and if you’re still unsure about your tax obligations, seek professional advice.
