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Self-assessment tax deadline Jan 2024

ended 08. January 2024

Ahead of the self-assessment tax deadline on 31 Jan, keen to get any intel from accountants on whether more small business owners are struggling to pay their bills or take out time to pay arrangements due to the struggling economy or cost of living crisis / higher mortgage payments. A few quick Qs:

  • Are you finding more small (and SME) business owners are falling behind on their tax due to, for example, the cost of living crisis, significantly higher mortgage payments or general trading conditions reducing revenues?
  • In your experience, are more SME owners looking to take out time to pay arrangements this year?
  • What's your advice to small business owners who may be struggling to pay their tax bills in full at the end of this month?

Any other trends you're seeing ahead of the self-assessment tax deadline, send them across.

2 responses from the Newspage community

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Editor
Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
Ever since Covid, the number of small business owners struggling has been increasing, but with the withdrawal of support, increasing tax burden on business owners, the increase of the national living wage and inflation have made the current situation significantly worse. The tax deadline will create worry around another bill, but those small businesses that have struggled will probably find that due to this, they have a smaller tax bill than in previous years. If they cannot pay what they owe HMRC will allow businesses to pay over a fixed period. They are more flexible than they used.
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Kevin Drew
Managing Director at Ascentant Accountancy
We have seen a number of self-employed tax payers through our doors over the last few months who have stuck their head in the sand and living a hand-to-mouth existence due to an increase in mortgage, electricity and general living costs.

Some of these haven’t kept an eye on their monthly figures or provisioned for tax reserves through the year and those that have provisioned for tax reserves, have dipped into them to pay for essentials such as paying for a roof over their head or food.

Further, those who are new to self employment often don’t account for Payments on Account, added to your tax bill on account for future tax bills where your tax bill is £1,000 or over… This can dramatically increase your tax liability.

For those struggling to pay their tax bill, talk to HMRC – You may be able to enter into a payment plan (Time to Pay Arrangement) or reduce your Payments on Account if your profits have reduced compared to the prior year.