As tax season looms with just over two weeks left to file the 2022-23 tax return, a potential shock bill could be waiting for nearly 5.7 million people in the UK. The self-assessment deadline on January 31 comes with a £100 penalty for those filing up to three months late.

While most individuals don’t need to file a tax return due to automatic deductions through Pay-As-You-Earn (PAYE), personal finance analyst Alice Haine warns that some might still owe money. Haine advises, “Never assume that you are exempt from filing a tax return, as there are instances where an individual needs to file, so it is important to double-check if this applies to you.”

From the High Income Child Benefit charge to the newly implemented “Vinted tax” on digital platforms, Haine sheds light on scenarios requiring a tax return. The article also delves into tips, renting out property, savings, income from overseas, self-employment, pension tax relief, and claiming tax relief on charitable donations.

Providing crucial tips, Haine emphasises the importance of understanding how tips are paid in service jobs, reporting property income, managing savings interest, and claiming pension tax relief through self-assessment.

For those grappling with the self-assessment process, the article guides readers on obtaining a unique taxpayer reference (UTR) and activation code from HMRC. It breaks down the steps to fill out a tax return and explores what happens after submission, including details on tax and National Insurance Contributions (NICs) payment.

In conclusion, the article highlights the significance of checking tax codes to avoid overcharges and references financial expert Martin Lewis’s reminder for employees to do the same. As the tax deadline approaches, this informative piece serves as a comprehensive guide for individuals navigating the complexities of the self-assessment process.