A large portion of HMRC customers have missed the tax return deadline (Image: Getty Images)
Now that the vital HM Revenue Customs (HMRC) deadline has passed, more than one million people are at risk of a maximum fine of £900.
stated that 11.5 million people managed to meet the Self-Assessment deadline, although approximately 1.1 million individuals failed to submit by last week’s cut-off. By midnight on January 31, a whopping 11,509,810 returns had been filed, according to official figures.
Yet for those who didn’t make it in time, a £100 penalty looms large for their tardiness. Notably, in a surge of last-minute compliance, 732,498 taxpayers rushed to file their documents.
is currently urging the laggards to expedite their submissions and pay any owed taxes to fend off further fines.
For taxpayers faced with the challenge of settling their dues all at once, an opportunity exists to arrange a ‘time to pay’ agreement, as reported by the . Myrtle Lloyd, ‘s Director-General for Customer Services, strongly advises: “I’m urging anyone who missed the deadline to submit their return as soon as possible to avoid any further penalties.”
The penalties ramp up for late filers, potentially escalating to additional charges amounting to 5% of the unpaid tax after 30 days, again at six months, and at the one-year mark, not to mention accruing interest if tax obligations are still unmet past the original deadline.
Full penalties:
- an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
- after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
- after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
- after 12 months, another 5% or £300 charge, whichever is greater
Taxpayers who miss the Self Assessment deadline face a series of escalating penalties, starting with an initial £100 fixed penalty. This applies regardless of whether there is tax to pay or if the tax due is paid on time.
After three months, additional daily penalties of £10 per day kick in, up to a maximum of £900. Six months after the deadline, a further penalty of 5% of the tax due or £300, whichever is greater, is imposed.
At the 12-month mark, another charge of 5% or £300, again whichever is greater, is levied. In a slight dip from the previous year, 11,581,962 returns were filed before last year’s January 31, 2024, deadline.
Charlene Young, Pensions and Savings Expert at AJ Bell, commented: ” estimates that 1.1 million people failed to file by the deadline risking £100 late filing penalties, a potential windfall for the taxman of £110 million.”
She also mentioned: “After Barclays suffered a systems-wide outage on Friday January 31, some taxpayers who held on to their cash until the last minute or were waiting for payday could have found they were unable to send money.
” is said to be working with Barclays and reassured those genuinely affected will be able to appeal any late payment fines through the usual channels.”
It’s important to note that even individuals who pay taxes through PAYE may need to complete a tax return under certain circumstances.
The High Income Child Benefit charge applies to those who need to pay it, as well as partners in a business partnership. If you’ve received more than £10,000 in interest from banks, building societies or investments, this also applies to you.
Who should file a Self Assessment?
Even if taxes are paid through PAYE, taxpayers may need to complete a tax return, for instance, if they:
- have to pay the High Income Child Benefit charge
- are a partner in a business partnership
- received interest from banks and building societies or investments (more than £10,000)
- are self-employed and earned up to £1,000 and wish to pay Class 2 NICs voluntarily to protect their entitlement to and certain benefits
- are self-employed and have earned gross income over £1,000
- had a total taxable income of more than £150,000
- have received any untaxed income including pension income over £2,500
- received income over £1,000 from trading or providing services online
- received rental or letting income from UK land and property
More details about selling online and tax obligations can be found on the GOV.UK website by searching ‘online platform income’ or via the app. This guidance will help determine whether your activity qualifies as a trade and if a Self Assessment tax return is required.