With just hours remaining until HMRC's January 31st deadline, a leading accountant has issued an urgent warning to the estimated 2.7 million Britons who have yet to file their self-assessment tax returns. The clock is ticking for those who risk immediate £100 penalties and potentially thousands in additional charges.
The Rising Cost of Delay
Mike Parkes of GoSimpleTax emphasizes the severe financial consequences of missing the deadline. "An initial £100 fixed penalty is just the beginning," he warns. "After three months, daily penalties of £10 per day kick in, up to a maximum of £900. At six months, you'll face further penalties of 5% of the tax due or £300, whichever is greater."
Who Needs to File Immediately?
The following groups are particularly at risk and must act before midnight on January 31st:
- Self-employed workers and sole traders
- Landlords receiving rental income
- Those with secondary income over £1,000
- Individuals claiming child benefit with income over £50,000
- Anyone with untaxed income from investments, commissions, or foreign sources
Essential Last-Minute Filing Tips
For those racing against the clock, Parkes offers crucial advice:
- Gather documentation immediately - Have P60s, expense records, and income details ready
- Use HMRC's free online service - The system guides you through the process step-by-step
- Don't guess figures - Use reasonable estimates if necessary but mark them clearly
- Set up a payment plan if needed - HMRC's Time to Pay arrangement can help avoid additional penalties
The Payment Problem
Parkes highlights a critical misconception: "Many believe filing alone satisfies the requirement, but both filing AND payment must be completed by January 31st. Even if you've filed, unpaid tax will accrue interest from February 1st at 7.75%."
With HMRC's systems experiencing peak demand, taxpayers are urged to act immediately rather than risk last-minute technical issues that could result in unnecessary penalties.
