HM Revenue and Customs (HMRC) has issued a warning to millions of UK households, urging them to take action in May to avoid fines of up to £900. The warning applies to those who missed the January 31 deadline for filing their Self-Assessment tax returns for the 2024/25 tax year.
Taxpayers who missed the original deadline now face daily penalties of £10 per day, which began accruing after May 1. The total penalty is capped at £900, and HMRC is urging people to file their returns as soon as possible to prevent further fines. An automatic £100 penalty was already triggered for missing the January deadline, with HMRC revealing that around two million people were cutting it fine to file their return.
After six months, those who still have not filed their return could face an additional penalty of 5% of the tax due or £300, whichever is greater. A further 5% or £300 charge, whichever is greater, may be applied 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.'
HMRC noted that over 10 million people completed their returns on time in January, while over 12 million were expected to file a self-assessment for the current tax year. Taxpayers can appeal against penalties if they have a 'reasonable excuse,' such as a severe illness or serious computer failure, or ask HMRC to withdraw a penalty issued in error.
