Record numbers of us spent Christmas Day or New Year's Eve submitting tax returns to HMRC.
Most of us spent the Christmas and New Year period enjoying drinks and laughs with family and friends. But a surprising number decided these were the best times to sort out their tax returns.
A record-breaking 24,546 people submitted their tax return online on 31 December according to HM Revenue and Customs (HMRC). Some people even chose to work on their tax return in the early hours of New Year’s Day, with 600 returns filed between midnight and 10am by dedicated, and hopefully sober, people.
Perhaps even more surprisingly 2,044 people filed their return on Christmas Day, a 13% increase on the previous year.
If you are one of the many who didn’t abandon the festivities to sort out their taxes, but still haven't filed your return, then you need to get on with it. Fail to file your return for the 2014/15 tax year by 31 January and you’ll face a £100 fine, with £10 added each day thereafter.
“As we all enjoy the festive season it’s easy to see how completing your tax return can be forgotten, but the 31 January deadline will be here quicker than we think,” says Ruth Owen, director general of personal tax, HMRC.
“Our advice is don’t leave it until it’s too late. Make sure you give yourself plenty of time and remember our online service is available with helpful advice and handy tips any time of year, whether that’s on Christmas Day, or even New Year’s Eve.”
So if you need to get your return sorted, how can you do it as painlessly as possible?
Get registered early
[SPOTLIGHT]It is too late to file a paper return (the deadline was 31 October) so you will have to do your return online. In order to do this you need to have a log-in for the HMRC website. Once you’ve applied, you’ll receive an activation code in the post which can take up to seven days to arrive.
So register as soon as possible.
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Gather your paperwork
Before you start, get together all the bits of paper you’ll need to fill out your return. You’ll need any official forms you’ve received from HMRC (potentially including P60, P45, and P11D), bank or building society statements for accounts that have generated interest over the year, details of dividends from investments and any other income you receive.
Turn to the web for help
If, or more likely when, you are puzzled by part of the self-assessment form, don’t call HMRC. An investigation this year found that the tax office only answers around half of the calls it receives and even those people had to wait over five minutes for a response. For more, read 'Abysmal' HSBC is failing taxpayers.
Instead visit HMRC’s website which has lots of advice and video guides to help you understand the self-assessment process.
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Don’t repeat your mistakes
You’ve hit the submit button and paid your bill, but don’t chuck all that paperwork back in a box and forget about the misery of your tax return until next January.
Set up a filing system for your paperwork so you can find it easily next year, create a spreadsheet for your income and expenses so you can build up the information over the year, and open a savings account to start setting aside regular sums for your tax bill.
For more, read How to get your online self-assessment tax return right.