The UK's tax authority, HM Revenue & Customs (HMRC), is preparing to issue automatic £100 fines to thousands of taxpayers who fail to submit their self-assessment returns by the January 31 deadline. With just days left to file, experts warn that last-minute filers could face penalties even for minor delays.
Who's at Risk of HMRC's £100 Fine?
Anyone required to complete a self-assessment tax return – including self-employed workers, landlords, and high earners – must submit their forms by midnight on January 31. HMRC's system automatically generates penalties for late submissions, with no exceptions for technical issues or postal delays.
The Escalating Penalty System
The initial £100 fine is just the beginning of HMRC's penalty structure:
- After 3 months: Additional £10 daily penalties (up to 90 days)
- After 6 months: Further £300 or 5% of tax due (whichever is higher)
- After 12 months: Another £300 or 5% of tax due
How to Avoid Penalties
Tax specialists recommend these steps to prevent fines:
- File immediately if you haven't already
- Pay any estimated tax owed to avoid interest charges
- Contact HMRC if you genuinely can't pay – they may offer a payment plan
With HMRC's systems experiencing heavy traffic in the final days, experts advise filing as early as possible to avoid last-minute technical glitches that could result in unexpected penalties.
