More than 475,000 self-employed people believe they will miss the January 31st deadline for completing self-assessment tax returns and paying any money owed, new research* from Handelsbanken Wealth & Asset Management shows.
Data from HM Revenue and Customs (HMRC) said that as of January 23rd, around 3.8 million people were yet to file their returns for the 22/23 tax year, and that it is expecting 12.1 million returns to be filed in total, along with any money owed. With just over a week to go, 8.3 million online returns had been received.
Handelsbanken Wealth & Asset Management’s research shows substantial numbers of self-employed workers struggle with completing self-assessment returns, with around 475,000 admitting they have missed the deadline in the past. 22% say they are worried about the financial consequences of making a mistake when filing, or the financial repercussions of missing the deadline.
Around 10% say completing self-assessment returns is challenging because of their lack of financial knowledge, and one in 12 (8%) say completing returns is tough because calculating their income is complex. The group most likely to miss the deadline is men aged 25-34, with 16% saying they are likely to file their return late.
Around half (46%) of self-employed people complete their self-assessment returns themselves, with 30% being confident about completing their self-assessment form correctly. That rises to 37% among the over-55s, with 55% completing their own returns.
The rising number of self-assessment returns reflects changes in the way people are employed, the study also showed. Over half (54%) of the working adults surveyed describe themselves as PAYE employee with no additional income, 27% as fully retired, while nearly a fifth (19%) – or 6.1 million people – have some form of self-employed income. Around one in 10 (9%) are self-employed with one or more sources of income.
A quarter of adults aged between 18 and 34 have some self-employed income, compared with just 9% of those aged 55-plus, and 22% of those aged between 35 and 54.
The main reason identified by the research for becoming self-employed is people’s desire to “follow their passion”. Around a third (33%) cited that as their motivation, compared with 17% who became self-employed to boost their income due to the cost-of-living crisis.
Around 15% of the self-employed took the plunge following redundancy. Nearly one in eight (12%) came out of retirement to become self-employed, as they needed the additional money because of the cost-of-living crisis.
Becoming self-employed has an impact on people’s contributions to their pensions and saving pots, the study shows. Around one in 10 of the self-employed contribute less to their pension, while 7% save less and 3% invest less.
Council tax hikes loom over UK households amid funding crisis
The looming spectre of council tax hikes casts a shadow over millions of households across the UK, adding to the financial burden brought on by the rising cost of living. Levelling Up Department projections suggest an imminent 4.99% increase in council tax bills, amounting to a substantial £100 surge for the average band D property in England.
Chancellor Jeremy Hunt's allowance for local authorities to implement up to a 5% council tax increase without referendum only exacerbates the strain on already stretched budgets. The move, coupled with potential pre-election cuts to income tax, threatens to disproportionately impact the most vulnerable segments of society.
Amid warnings of a funding crisis plaguing local councils, emergency measures, including a £500 million package, have been unveiled by Levelling Up Secretary Michael Gove. However, critics argue that these short-term solutions offer little respite in the face of deep-seated financial woes.
Against a backdrop of mounting council bankruptcies and a growing chorus of pleas for sustainable funding solutions, the need for decisive action to safeguard essential services and support struggling households has never been more pressing.
Seeking warmth amid winter's chill: assessing UK's 'warm spaces' initiative
As winter's icy grip tightens, many across the UK find themselves grappling with the challenge of staying warm amidst skyrocketing energy costs. In response, an initiative aimed at providing free warm spaces has gained traction, offering a lifeline to those in need.
Analysing data from 2,500 participating locations, experts have identified key regions offering accessible warm spaces, providing respite from the cold. North Yorkshire leads the pack with 56 locations, followed closely by Bolton and Bournemouth, Christchurch, and Poole.
These warm spaces offer more than just physical warmth; they serve as vital community hubs, fostering social connections and providing support to those facing the harsh realities of winter's chill. As households navigate the challenges posed by the cost of living crisis, initiatives like these offer a glimmer of hope, embodying the spirit of resilience and solidarity in the face of adversity.
