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Millions of people who have yet to file their self-assessment tax returns to HMRC are urged to act.
Failing to meet the deadline on Friday, January 31, will result in a minimum penalty of £100. This figure increases by the day on which the deadline is missed.
Myrtle Lloyd, HM Revenue and Customs (HMRC) 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.”
HMRC has said that as many as 340 million people are yet to file their returns.
Who may need to file a self-assessment tax return?
According to the tax body, people may need to file a self-assessment return if, in the last tax year (April 6, 2023, to April 5, 2024), any of the following applied:
- They were self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything they could claim tax relief on)
- They were a partner in a business partnership
- They had a total taxable income of more than £150,000
- They had to pay Capital Gains Tax when they sold or ‘disposed of’ something that increased in value
- They had to pay the High Income Child Benefit Charge.
People may also need to send a tax return if they have any untaxed income, such as:
- Money from renting out a property
- Tips and commission
- Income from savings, investments and dividends
- Foreign income.
People can check if they need to send a tax return if they’re not sure.
Once customers have submitted their return, HMRC said the “quickest and easiest” way to pay any tax due is through the free and secure HMRC app.
Nearly 360,000 have paid their Self Assessment tax bill through the app since April 6, 2024, totalling more than £605million.
A full list of the different ways to pay, including payment plans, can be found on GOV.UK.
If the initial deadline is missed, a late filing penalty of £100 is applied. After three months, additional penalties of £10 per day are applied, up to a maximum of £900.
After six months, a further penalty of 5% of the tax due or £300 is applied, whichever is greater. After 12 months, another 5% or £300 charge will be applied, whichever is greater.
Seb Maley, CEO of insurance contractor Qdos, said: “With the tax return deadline rapidly approaching, this is a timely reminder from HMRC.
“Fail to file your tax return and pay it by midnight on January 31, and you’ll be hit with a £100 fine immediately. These fines start to rack up, with interest added to the amount you owe. Needless to say, acting sooner rather than later will make a big difference.
“What’s more, unfiled, late or incorrect tax returns can increase the likelihood of being investigated by HMRC. Doing everything you can to meet this month’s deadline and submit an accurate tax return is vital.”
He added: “The good news is that help is available to those who need support or might struggle to pay. Exploring HMRC’s Time to Pay facility, which can spread out the cost of your tax bill into manageable monthly payments, is one option.”
