Over One Million Taxpayers Face £100 Fines After Missing Self Assessment Deadline

Over One Million Taxpayers Face £100 Fines After Missing Self Assessment Deadline

HM Revenue and Customs (HMRC) has confirmed that more than one million individuals missed the crucial January 31 deadline for submitting their Self Assessment tax returns for the 2024 to 2025 tax year. These late filers now face an immediate £100 penalty, with the potential for further financial penalties to accrue in the coming months if they fail to act promptly.

Last-Minute Rush and Support Services

The tax authority disclosed that a staggering 475,722 taxpayers waited until the final day to submit their returns. In a dramatic eleventh-hour surge, 27,456 people filed between 11pm and 11.59pm on January 31. The peak hour for submissions was from 5pm to 5.59pm, with 32,982 individuals completing their returns during this period.

To assist taxpayers, HMRC extended its support services on the deadline day, keeping helplines open on a Saturday—an unusual move. Advisers handled 5,409 webchats and fielded 10,483 calls, providing crucial guidance to those navigating the filing process.

Penalties and Urgent Calls for Action

HMRC had anticipated over 12 million Self Assessment customers to file their returns and settle any tax owed by the deadline. While 11.48 million managed to meet the cut-off, the approximately one million who missed it are now subject to penalties. Myrtle Lloyd, HMRC's chief customer officer, emphasised the urgency: "Anyone who missed the deadline should file their return as soon as possible, as penalties and late payment interest may be charged."

The penalties for late submission start at £100 but can escalate. Additionally, late payment incurs further penalties: 5% of the unpaid tax at 30 days, six months, and 12 months, plus interest on any tax paid late.

Digital Solutions and Future Deadlines

HMRC is encouraging taxpayers to use its digital channels, which it describes as the quickest and easiest way to manage tax affairs. Customers can file their returns and pay any outstanding tax via GOV.UK, with the HMRC app highlighted as one of the fastest payment methods. For those unable to pay in full, Time to Pay arrangements are available, subject to meeting specific criteria.

Looking ahead, customers will be able to submit their Self Assessment tax returns for the 2025 to 2026 tax year from April 6, 2026. HMRC also notes upcoming changes to tax rules from that date, including the introduction of Making Tax Digital (MTD) for Income Tax for sole traders and landlords with qualifying income exceeding £50,000, requiring quarterly summaries of income and expenses.

Key Takeaways for Taxpayers

• Over one million missed the January 31 deadline, facing £100 fines.
• Penalties can increase for late filing and payment, with interest charges.
• HMRC urges immediate action via digital platforms to minimise penalties.
• Future deadlines and new MTD rules require early preparation.

In summary, while the majority filed on time, HMRC's announcement serves as a stark reminder of the financial consequences of missing tax deadlines, urging all affected taxpayers to rectify their situation without delay.