HM Revenue and Customs (HMRC) has issued a warning to millions of UK households that they could face fines of up to £900 if they fail to file their Self-Assessment tax returns promptly. The warning comes after the May 1 deadline, with daily penalties of £10 per day now accruing for those who missed the original January 31 deadline for the 2024/25 tax year.
The daily penalty is capped at £900, and HMRC urges taxpayers to file their returns as soon as possible to avoid further fines. An automatic £100 penalty was already triggered for missing the January deadline, and HMRC revealed that around two million people were cutting it fine to file their return.
After six months, those who still have not filed could face an additional penalty of 5% of the tax due or £300, whichever is greater. A further 5% or £300 charge may apply after 12 months. Interest may also be charged on any unpaid tax after the deadline.
Richard Murphy, Director at Tax Research LLP, advised: 'Tax is hard. Getting it right is harder still. Taking time to do that is essential, and doing it early takes away the panic that happens late in the year when so many mistakes are made. Get your tax done now, sleep easier as a result, and avoid the risk of penalties.'
Taxpayers can appeal against penalties if they have a 'reasonable excuse', such as a severe illness or serious computer failure. Penalties issued in error can also be withdrawn by HMRC upon request.
