HM Revenue and Customs (HMRC) has issued an urgent warning to millions of taxpayers, including those selling items on platforms like eBay and Vinted, to file their self-assessment tax returns by the January 31 deadline or face a £100 fine.
Individuals who earn extra income from side hustles or selling goods online may need to submit a return if their earnings exceed £1,000 in a tax year and they are trading for profit. Selling personal unwanted items typically does not require tax payment.
Late filing penalties escalate: after three months, daily fines of £10 apply up to £900; after six months, a 5% charge on tax owed or £300 (whichever is greater) is imposed, repeated after 12 months. Interest at 7.25% accrues on late tax payments, with additional 5% penalties after 30 days, six months, and 12 months.
As of January 6, 5.4 million people had not yet filed. HMRC advises using GOV.UK to submit returns and pay taxes. Those owing under £30,000 may set up a Time to Pay payment plan if they meet conditions, including no existing HMRC debts and applying within 60 days of the deadline.
Myrtle Lloyd, HMRC’s director general for customer services, urged: “The self-assessment deadline is fast approaching, don’t leave completing your tax return to the last minute.”
