Tax return deadline nears – more than 1,600 filed just minutes too late last year
More than 1,600 people missed the midnight deadline to file their self- assessment tax return last year by just five minutes, according to new figures from HMRC. The tax authority said that 1,638 tax returns were filed between midnight and 12.05am on February 1 2025 – just minutes after missing the January 31 deadline, according to a Freedom of Information (FoI) request made by NFU Mutual, the financial advice firm.
The FOI also showed that 3,303 tax returns were filed between 11.55pm and 11.59pm - just before the deadline - on January 31 2025.
Sean McCann, chartered financial planner at NFU Mutual, the financial advice firm, shares five tax saving tips ahead of this year’s January 31 deadline to help those filing their tax returns.
1.Don’t forget to claim higher rate tax relief on pension contributions:
Sean said: “Millions more people are being caught in the 40% income tax net, due to the long-term freeze on the £50,270 threshold which is set to last until April 2031. HMRC estimates that 6.56m people were 40% taxpayers in 2024-25, with an additional 1.1m paying 45% income tax.
“When you pay into your pension, for every £80 you pay in, your pension provider will collect another £20 direct from HMRC. If you pay 40% or 45% income tax, you’ll need to claim the extra 20% or 25% tax relief via your tax return.
“Many higher and additional rate taxpayers do not do this, potentially missing out on thousands of pounds in unclaimed tax relief. Those who crossed the 40% threshold for the first time in the last tax year may be unaware that they are entitled to a rebate.
“Additionally, if you haven’t claimed on previous year’s tax returns, you can go back up to four years and claim any higher rate relief due by contacting HMRC direct.”
2. Charitable donations
Sean said: “If you’ve given to charity via gift aid and you pay higher rate tax, you can claim back additional tax relief through your tax return.
“For example, if you donate £100 via gift aid, the charity will claim an additional £25, to make the total gift £125. If you pay 40% tax, you can reclaim up to an extra £25 for yourself (£125 x 20%).”
He added that a 45 % taxpayer who donates £100 can reclaim an additional 25% of the total (£125 x 25%) = £31.25 via their tax return. This means the cost to them of giving £125 to charity is £68.75 (ie 45 % tax relief).
Sean McCann added: “Previous research has indicated that only 17% of higher and additional rate taxpayers who donate to charity always claim this relief , many miss out because they don’t keep records of their donations or feel it’s too much work.
“However, it is relatively simple to do via a self-assessment tax return and could be worth a lot of money for those who donate significant sums.
“Because more people are being dragged into paying higher rate of income tax, the amount of tax relief on charitable donations claimed by higher rate taxpayers has rocketed from £550m in 2020-21 to an estimated £820m expected to be reclaimed in 2024-25.”
3. Get help with the cost of professional subscriptions
Sean said: “If you need to be a member of a professional organisation to do your job, and your employer hasn’t paid the subscription for you, you may be able to claim tax relief on the cost. There is a long list of approved professional organisations on HMRC’s website.”
4. Watch out for the child benefit tax trap
Sean said: “If you’re the highest earner in your household with an income of more than £60,000, and you or your partner claim child benefit, you’ll need to pay the child benefit tax charge. For every £200 of income you have over £60,000, you pay back 1% of the child benefit. Once your income reaches £80,000 you repay the full amount.
Sean McCann added: “You can become subject to the charge if you moved in with someone who is claiming child benefit, even if they’re not your children. The good news is anything you’ve paid into your pension is knocked off your income before the charge is assessed. If it reduces your income below £60,000 you won’t need to pay the charge.
5. Don’t forget any capital gains
Sean said: “If you sold or gave away shares in the 2024-25 tax year, you need to declare and pay any tax due on gains made.
“Many people don’t realise that they can face a capital gains tax bill when they gift shares or property - other than their main home - to anyone other than their spouse or civil partner.
“It’s worthwhile checking if you have any losses available to offset any potential bill. Any shares or investment held within an ISA or pension are normally exempt from capital gains tax.”
