As the critical January 31 deadline for self-assessment tax returns draws near, HM Revenue and Customs (HMRC) has confirmed that more than 10 million individuals have already submitted their filings for the 2024-25 tax year. However, with an estimated total of 12 million people expected to file, the clock is ticking for approximately two million taxpayers who have until the end of Saturday to complete their returns.
Immediate Penalties for Missed Deadline
Those who fail to meet the Saturday deadline face an automatic initial penalty of £100. This fixed charge applies even if there is no tax to pay or if the tax due is settled on time. HMRC has emphasised that this is just the beginning of potential financial consequences for late submissions.
Escalating Fines for Persistent Delays
Beyond the initial £100 penalty, the revenue body has outlined a structured system of escalating fines for continued non-compliance:
- After three months, daily penalties of £10 per day may be imposed, accumulating to a maximum of £900.
- At the six-month mark, a further penalty of 5% of the tax due or £300, whichever is greater, could be applied.
- After 12 months, another charge of 5% or £300, whichever is greater, may be levied.
Additionally, late payments attract separate penalties of 5% of the unpaid tax at 30 days, six months, and 12 months. Interest may also be charged on any outstanding amounts after the deadline.
Enhanced Support Services from HMRC
In response to the impending deadline, HMRC has bolstered its customer support services. A spokesperson stated, “More customers have filed their tax return compared to this time last year, but for anyone yet to file and pay, don’t leave it until January 31 – take action now.”
The revenue body encourages taxpayers to utilise its digital and online services, which are described as fast and easy. For those requiring additional assistance, enhanced support will be available on deadline day:
- Webchat service capacity will be increased to ten times the usual Saturday level.
- A dedicated phone service will operate from 9am to 4pm specifically for self-assessment enquiries.
- HMRC’s 24/7 digital assistant and comprehensive guidance on gov.uk remain accessible.
Regular phone lines are open Monday to Friday from 8am to 6pm.
Options for Those Unable to Pay in Full
For individuals who cannot settle their tax bill in full by January 31, HMRC offers a “time to pay” arrangement. This option is available online for those who owe less than £30,000 and meet specific criteria, providing a structured plan to manage payments without incurring immediate penalties for late payment.
Reasonable Excuses and Scam Warnings
HMRC has indicated that it will consider reasonable excuses for missing the deadline, which may allow some taxpayers to avoid penalties. However, taxpayers are also urged to remain vigilant against scams. Fraudsters often impersonate HMRC, threatening individuals with unpaid tax bills or offering fake rebates. It is crucial to verify any suspicious communications directly through official channels.
This heightened alert follows an incident earlier in January where HMRC apologised for a short-lived technical issue that temporarily disrupted its helplines. As the deadline approaches, ensuring timely and accurate submission through verified methods is paramount to avoid financial penalties and potential fraud.
