HMRC has issued a four-week warning to 5.4 million Britons who have yet to file their self-assessment tax return, with a deadline of 11:59pm on January 31. Those who miss the deadline face an initial £100 fine, even if no tax is owed or if the tax is paid on time.
According to HMRC data, 24,800 people filed their returns on New Year's Day. The deadline applies to the 2023-24 tax year. After three months, additional daily penalties of £10 per day are added, up to a maximum of £900. Further penalties of 5% of the tax due or £300 (whichever is greater) are applied after six and 12 months.
Late payment also incurs penalties of 5% of the unpaid tax at 30 days, six months and 12 months, plus interest at 7.25% on the amount owed. Most UK taxpayers do not need to file a return as tax is deducted automatically from wages, pensions or savings. However, returns are required from self-employed individuals or those with extra untaxed income.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We know completing your tax return isn’t the most exciting item on your New Year to-do list, but it’s important to file and pay on time to avoid penalties or being charged interest. The quickest and easiest way to complete your tax return and pay any tax owed is to use HMRC’s online services – go to GOV.UK and search ‘Self Assessment’ to get started now.”
