HMRC issues four week warning to five million Brits who are at risk of £100 fine
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HMRC has issued a four week warning ahead of a major tax deadline this month. The deadline for filing your self-assessment tax return and paying any money that is owed is 11:59pm on January 31. Today, the tax office revealed that 5.4 million Brits still need to complete and pay their self-assessment. According to recent data, 24,800 people filed their returns on New Year's Day.
This year's deadline is for the 2023-24 tax year, and HMRC warns that if you miss it, you could face an initial late filing penalty of £100. This applies even if there is no tax to pay or if the tax due is paid on time. After three months, additional daily penalties of £10 per day are added, up to a maximum of £900.
After six months, a further penalty of 5% of the tax due or £300 is then added - whichever is greater. After 12 months, another 5% or £300 charge is added. There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, six months and 12 months. If the tax remains unpaid after the deadline, interest of 7.25% is also be charged on the amount owed, in addition to the penalties.
Most UK taxpayers have their taxes deducted automatically from their wages, pensions or savings, and won't need to file a tax return. But tax returns are due from individuals or businesses that haven't had tax automatically deducted, or that have earned extra untaxed income.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: "We know completing your tax return isn’t the most exciting item on your New Year to-do list, but it’s important to file and pay on time to avoid penalties or being charged interest. The quickest and easiest way to complete your tax return and pay any tax owed is to use HMRC’s online services – go to GOV.UK and search ‘Self Assessment’ to get started now.”.
