ACCA warns self-employed not to miss hidden holiday tax self-assessment deadline

The Association of Chartered Certified Accountants (ACCA) is reminding the rising numbers of self-employed not to overlook the July 31 self-assessment tax payment deadline before their summer holiday getaway, or they risk hefty penalties when they return home.

ACCA says that the self-employed – currently around 4.8 million people in the UK - as well as higher rate taxpayers, company directors and anyone with more than one income as well as, potentially, child benefit claimants are required to make a payment on account – part of their annual tax payment, by 31st July, at the height of the holiday season in the UK.

However, failing to pay could result in hefty penalties from HM Revenue and Customs (HMRC).

Chas Roy-Chowdhury, head of taxation at ACCA, said: “After a hectic and uncertain past pre-holiday rush, dealing with a tax payment is probably the last thing on many people’s minds. With sterling in such a state of flux, many holiday-makers have probably been more focused on exchange rates and how to afford those extra holiday treats

“However, this is not something that can be left until you come back from your summer break, or even leaving it until the last minute and trying to do it yourself. The consequences of not paying on time or paying the wrong amount are high. The current fine is 5% of tax owed which is a massive amount in the era of near zero interest rates.

“Many self-employed, especially those who have recently made the move to become so, may not even be fully aware of this process as the July deadline is not the most publicised and is hidden in the depths of the holiday season. There is a risk that many taxpayers risk getting caught out. Ignorance and naivety are no excuse when it comes to taxfiling.”