There was a 15% increase in Christmas Day tax returns, this year, according to new research by The Accountancy Partnership, as more businesses than usual are expected to file late tax returns.
Official figures from HM Revenue and Customs (HMRC) show 3,275, Self Assessment tax returns were filed on Christmas Day 2022, up from 2,828 the previous year.
More than 20,000 people (22,060) logged in online to submit their form for the 2021 to 2022 tax year between Christmas Eve and Boxing Day, a staggering 29% less than the previous year.
An accounting expert is urging entrepreneurs to submit their returns as early as possible before the 31 January deadline to avoid financial penalties.
Lee Murphy, managing director at The Accountancy Partnership, said: “Christmas and New Year is one of the few times of year where business slows down for almost everyone one, giving the nation an opportunity to switch off and spend time with family and friends. But with the Self Assessment deadline just around the corner, we suggest entrepreneurs file their paperwork as soon as possible to avoid entering the new year on the back foot.
“As the 31 January deadline approaches, it is important that people make sure they submit on time, but this doesn’t have to come at the expense of your Christmas break.”
Recent research into the mental health of small business owners found financial fears have led to sleepless nights for almost a third (30%) of SME owners in the past 12 months.
Lee Murphy continued: “While not everyone celebrates Christmas to the same extent across the country, we urge everyone to take a break and take advantage of the bank holidays we have around this time of year.
“Worryingly, just one in 10 (12%) of those SME owners who have experienced mental health issues sought professional help.
“The ongoing economic challenges are making running a business challenging. Ticking off another task on the to do list before the deadline will ease your new year workload. Our research showed that more than half (52%) of entrepreneurs said owning a business was more challenging than expected, and returns can be complicated when submitting for the first time.
“If you’re planning to get the help of an accountant to complete your Self Assessment, don’t leave it until the last minute. This is a very busy time for the industry, and there are no guarantees they can fit you in before it’s too late.
“Submitting your return as soon as possible means you’ll receive any tax refund sooner, too, and it gives you more time to prepare, and avoid any late filing fines.
“Remember, the date you submit your Self Assessment doesn’t affect the payment deadline. Filing ahead of time simply gives you more time to budget for your tax bill which is very important as the cost-of-living crisis continues.”
Here’s a simple checklist of what you’ll need to submit your Self Assessment:
The details of any employment for the last tax year.
Any self-employment activities, including profit and loss figures.
Pension income or taxable lump sums received in the tax year.
Investments, capital gains and other income.
For more guidance on submitting your Self Assessment tax return visit: https://www.theaccountancy.co.uk/landing/self-assessment-accounts-service.
More than 31,000 customers submitted their tax return for the 2020 to 2021 tax year between Christmas Eve and Boxing Day (24 to 26 December 2021).
Christmas Eve: 19,802 tax returns were filed. The peak time for filing was 11:00 to 11:59 when 2,914 returns were received
Christmas Day: 2,828 tax returns were filed. The peak time for filing was 12:00 to 12:59 when 227 returns were received
Boxing Day: 8,641 tax returns were filed. The peak time for filing 12:00 to 12:59 when 821 returns were received
