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Millions are expected to miss the self-assessment tax deadline as HMRC failings are brought to light.

The latest analysis by finance experts,听, has shown that the number of HMRC customers likely to miss this month鈥檚 self-assessment tax deadline is expected to climb, as they struggle to get the help they need following HMRC鈥檚 decision to shut its helpline for all but priority calls.

The self-assessment deadline is fast approaching and as of midnight on the 31st January, millions of self-employed workers will be expected to have filed their self-assessment tax returns.

12m People Submitted a Self-Assessment Last Year

 
The analysis of听听by RIFT shows that last year (2022/23), 拢42.9bn was paid in self-assessment income tax, the highest total seen in the last two decades (Since 2003/04). Last year, self-assessment tax receipts also accounted for 17.3% of total income tax receipts received by HMRC, up from 13% two decades ago – again the highest proportion seen during this time period.

. Of these, 8% missed the deadline. While this figure was听, it still equated to a total of an estimated 1 million people.

Failure to file your self-assessment could see you hit with an initial late filing penalty of 拢100听if you are up to three months late in doing so.

You鈥檒l have to pay more if it鈥檚 later, or if you pay your tax bill late and you鈥檒l also be charged interest on your late payments.

Despite the year-on-year reduction in the number of people missing the self-assessment tax deadline, it鈥檚 expected that this downward trend will be reversed this year.

56% Increase in Time Taken to Answer Calls

 
The reason? At the start of December last year, HMRC听听that they would be closing their helpline to all but priority calls.

贵耻谤迟丑别谤听听data by RIFT鈥檚 shows that in November 2023, just prior to this announcement, the average waiting time to speak to someone sat at an average of 22 minutes and 18 seconds. This was 56% longer versus November 2022, despite the fact that the number of calls received had actually declined by 1.4% during the same time period.

听shows that nearly a quarter of all calls to HMRC advisers are made in the eight weeks leading up to the January self-assessment deadline. It鈥檚 not just those embarking on self-assessment for the first time in 2024 who are likely to struggle, there is also expected to be increased demand for help from pensioners who have been drawn into income tax territory, as well as those impacted by the Government鈥檚 stealth tax raid.

Inadequate Webchat Service Buckling Under Pressure

 
HMRC鈥檚 solution has been to funnel customers to their webchat service and the analysis by RIFT shows that in November last year, 99,381 webchats were submitted to HMRC, a year-on-year increase of 139.5% – a huge increase before the decision to close the HMRC helpline was even made.

However, the service has been criticised as not fit for purpose, with many failing to get the answers they need, while many more have also struggled to use it in the first place, including older听generations and those with learning difficulties such as dyslexia.

Customers Expected to be Out of Pocket

 
Not only are many customers in danger of receiving fines for missing the self-assessment deadline, but many more are worried that they will underpay the tax owed, making them liable to further financial penalties down the line.

贬辞飞别惫别谤,听听also shows that they could be out of pocket should they overpay.

The figures from RIFT show that the average tax refund from HMRC currently stands at 拢1,625, having increased by 5.1% in the last year alone.

But it鈥檚 not just an overpayment that could mean you are owed a refund. Many self-employed workers simply don鈥檛 realise that they could be owed money if they鈥檝e purchased items such as office supplies, clothing or subscriptions related to their work. They can also claim a refund if they have made a donation to charity, clocked up mileage while travelling for work or incurred legal or financial costs such as hiring an accountant.

Bradley Post, MD of听, commented:

鈥淭he decision by HMRC to close their helpline ahead of this month鈥檚 self-assessment deadline has been heavily criticised and quite rightly so as it’s likely to impact millions of people, many of whom will be undertaking the task of completing a听for the first time.

“While we can appreciate that the current economic landscape is far from ideal and HMRC itself is not immune to such factors, it’s fair to say that it should have been much better prepared to deal with the increased demand for its help and advice.

For those still struggling with a self-assessment the best advice at this late stage is to contact them as early as possible with any query, have your finances well organised before you do and, if you’re still at a loss, seek the help of additional industry professionals such as an accountant, or a tax return specialist like RIFT.”