As the fireworks started at the end of the 10-second countdown on 1 January, you may have been reminded of another fast-approaching deadline: the cut-off for submitting a self-assessment tax return.
You must have submitted your return by 31 January for the tax year that ended the previous April. In this case, that would be the 2023/24 tax year, which ended on 5 April 2024. This is for online submissions only, with returns filed by paper having a separate deadline of 31 October 2024.
If you fail to meet this deadline on 31 January, you may face penalties on top of the tax you will need to pay as part of your return. So, it is important to make sure everything is in order and you have correctly submitted and paid your tax bill before this point.
However, it is important to be aware that this deadline is also lucrative for fraudsters. Indeed, HMRC has issued a warning ahead of the deadline, reminding everyone to be aware of scams related to tax rebates and requests for payments.
So, find out why HMRC has issued a scam warning ahead of this deadline, and what you can do to ensure you keep your wealth secure. You can also read about some of the reasons why you may need to complete a self-assessment tax return as a rugby player, so you can prepare if you need to complete a return yourself.
HMRC has issued a scam warning ahead of the deadline on 31 January
The deadline for self-assessment tax returns on 31 January is a busy one. HMRC figures from October stated that more than 12 million people would need to settle a tax charge by the date, with 3.5 million already having done so at that stage.
Unfortunately, with this number of people needing to submit their returns, the deadline has become an opportunity for scammers to try and access your wealth.
According to HMRC, fraudsters have been contacting people with offers of tax refunds, or claiming that individuals need to pay a tax bill urgently.
If you respond to this request, they will then attempt to get hold of your personal information including your name, National Insurance number, and bank account details. With this information to hand, your wealth may then be exposed to these fraudsters.
This may be more common than you think, too, with HMRC figures showing that around half of all scam reports in the last year were fake tax rebate claims.
Data also shows an increase in the number of scam referrals to HMRC. There was a 16.7% rise in these between November 2023 and October 2024, going from 123,596 in the previous 12-month period to 144,298.
So, you can see why it is so important to be aware of fraud when it comes to your self-assessment.
Being scam-aware can help you stay safe from fraud
When it comes to financial fraud, the best form of protection is often knowledge. Being aware of the techniques scammers use can help you identify a con before you reveal any information that they can use to access your wealth. Fortunately, HMRC has provided guidance that could assist you in doing exactly that.
Firstly, it is worth being aware that HMRC will never contact you using email, text, or phone to let you know that you have received a refund, or ask you to request one. Instead, you can claim a refund through your account on the HMRC website, or using the HMRC app.
Additionally, HMRC will never leave voicemails threatening legal action or arrest if you have not paid the tax you owe. Furthermore, they will never ask you for personal or financial information over a text message.
Knowing these facts about how HMRC will generally get in contact with you could help you to quickly identify scam attempts, preventing you from mistakenly giving a fraudster access to your wealth.
If you do receive any enquiries that claim to be from HMRC but you think are fraudulent, you are able to report this directly.
You can forward fraudulent emails you receive to phishing@hmrc.gov.uk and then delete them so you do not accidentally click any links later. Meanwhile, you can report tax scam phone calls on the government website, or forward suspicious texts to 60599 (delete these also when you are done).
Crucially, if you think you may have fallen victim to a self-assessment fraud, you should contact your bank and any other financial providers to let them know what has happened.
They will be able to provide you with next steps to secure your accounts and protect your wealth.
There are various reasons why rugby players may need to complete a self-assessment return
You might think that only business owners and self-employed people need to complete a self-assessment tax return.
In reality, there are a variety of circumstances when it is necessary to complete a return, many of which could affect you as a rugby player. For example, you may need to file a self-assessment return if you:
- Earn over £150,000 a year. This is calculated based on your adjusted net income (that is, your total taxable income minus pension contributions) and applies even if all your income is from employment.
- Generate savings and investment returns in excess of key thresholds. In particular, savings interest, gains on investments, and dividends may all be taxable and need reporting on a self-assessment return.
- Had to pay the High Income Child Benefit Charge. This applies if you have children and claim Child Benefit but you (or your spouse or partner) have an income in excess of certain thresholds.
- Received income from property rent. If you own any buy-to-let properties, this could affect you.
This list is not exhaustive, and there may be other circumstances in which you would need to complete a self-assessment return.
If you are unsure whether you need to complete a return or if this has already been completed, it may be worth contacting your accountant.
Get in touch
If you would like help managing your wealth for this new year and beyond, then please do get in touch with us at DBL Asset Management.
Email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate tax planning.