Martin Lewis issues tax warning to self-employed people ahead of crucial deadline next week

dailyrecord.co.uk:

Martin Lewis has issued a key warning to nearly 4 million people who need to file their self-assessment tax return to HM Revenue and Customs (HMRC) by next week.

On the latest edition of The Martin Lewis Money Show Live, the consumer champion explained that not filing by the January 31 deadline will result in a £100 fine, and after that date, will start to accrue interest daily on any money owed.

He also urged people to contact HMRC now as phone lines and web chat services are already “very busy”, telling viewers it’s better to be panicking now and not get through while the deadline is a few days away rather than leaving it to the last minute.Martin also said there are two key things everyone who needs to file a self-assessment must do before the deadline: “One, if you’ve got a self-assessment form you need to file it by the 31st of January or you will be fined £100.

Two, you need to pay your tax before then too.”He continued: “Don’t leave it to the last minute, HMRC phone and web chat is very busy already, you don’t want to be panicking and not able to get through in a couple of days - you want to be panicking and not able to get through now, which is probably what will happen.”The financial guru added: “This is important, if you don’t pay the tax owed in time you will start accruing interest at a rate of 7.75 per cent annual rate accrued daily.”He also had a tip for anyone unsure about how much they need to pay, adding that it’s better to pay what you think you owe, than nothing at all.Martin continued: “If you’re pulling your hair out saying ‘I’m never gonna get this done in time’, take a guess at what tax you owe and pay it.