Christmas Day last year was rather taxing for 300 people who filed their self-assessment returns online – but with filing a tax return taking a whole working day, many more could be filling in forms while the rest celebrate.
Hundreds of thousands of people struggle to complete their tax returns, according to consumer watchdogs Which?
The group has calculated that the nation spends 26 million hours completing tax returns.
Some taxpayers are quicker than others, says Which?
Although nearly half take between one and three hours, one in 10 takes between three and five hours and one in 20 between five and 10 hours.
Time-consuming task
With more than 11 million people completing a return each year, that could mean almost 600,000 people spending a working day on the task.
When asked what takes them so long to file a tax return, 44% could not find the receipts and other documents they needed; 34% confessed they did not understand the form and 10% had to look up the jargon to see what the terms meant.
Which? Money Expert Gareth Shaw said: “Our findings show just how time-consuming and laborious tax returns can be for many. We found people struggled with complex language and trying to make sense of HMRC forms.
“To avoid a late submission and a hefty fine, we’d recommend using one of the streamlined tools that can guide users through the process quickly with reduced stress. As the deadline approaches – returning your tax doesn’t have to be such an ordeal.”
Hefty fines for late-filing
Self-assessment returns for the year April 6, 2016 until April 5, 2017 are due for filing online by midnight on January 31, 2018.
Any income or capital gains tax due should be paid by the deadline as well.
Missing the deadline can lead to some hefty fines. Filing after midnight will cost anyone without a reasonable excuse an automatic £100 fine even if the taxpayer has no tax to pay.
Leaving the task for three months can easily add up to more than £1,000 in fines and tax penalties.
Anyone without online codes to file their returns should act immediately, as HMRC posts out the access code – and this can take up to 10 working days to arrive and even longer for expats.
