HMRC issues one-week warning to 3.4million people who risk £100 fine
HMRC issues one-week warning to 3.4million people who risk £100 fine
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HMRC has issued a warning to 3.4million people who have yet to submit their self-assessment tax return. The deadline to file your tax return for the 2023/24 tax year is January 31. You may need to submit a self-assessment if you're self-employed, if you earned extra income outside of your main employment, if you earn income from renting out a property, or if you're a high earner and you claim Child Benefit.
Check our list at the bottom of this article to see if you could owe tax. If you submit your self-assessment after January 31, you’ll be slapped with a £100 fine from HMRC - even if you have no tax to pay. This increases to fines of £10 a day, up to a maximum of £900, if you still haven’t filed after three months - then after six months, you’re charged 5% of tax owed or £300, whichever is greater. This is then repeated again after 12 months.
You must also pay any tax due by 31 January, or you’ll accrue 7.25% interest on any late tax payments. After 30 days you'll then also be fined an extra 5% of the unpaid tax, with this being repeated at six months and 12 months. If you're struggling to pay your tax bill and you owe less than £30,000, you may be able to set up a payment plan with HMRC, known as Time to Pay.
You'll need to not have any other payment plans or debts with HMRC, have up to date tax returns, and ask for help within 60 days after the payment deadline. You should have registered for self-assessment by October 5 last year. Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Time is running out for the millions still to file their Self Assessment tax return by 31 January. Help and support is available for those who have not yet started their return. Visit GOV.UK and search ‘Self Assessment’ to find out more.”.
