HMRC to issue instant £100 fines to taxpayers from Friday | Personal Finance | Finance

His Majesty’s Revenue and Customs (HMRC) is set to issue instant £100 fines to people who miss a vital tax deadline this week. The government department sets a deadline of July 31 every year for people who need to pay their self-assessment tax return. If you pay your tax return online it must be submitted by 11.59pm on January 31, 2026, but there is a second payment deadline in July for those who have a large tax bill and make payments in instalments.

These are known as ‘payments on account’ and help to spread the cost of your tax by making two instalments on the tax owed from the previous April to April financial year, rather than one lump sum. These payments are due by midnight on January 31, 2026, and Thursday, July 31, 2025. The first deadline is now just days away and those who miss it face an instant £100 fine from HMRC.

In a reminder on X, HMRC said: “Self Assessment payments on account are due on 31 July. Whilst you’re making your payment – why not also submit your 2024-25 tax return so you have six months to budget for any tax you owe. Make payments online or via the HMRC app.”

HMRC said it is expecting more than 12 million people to file a tax return this year and pay any tax owed, many of which will be paid in instalments as ‘payments on account’.

Myrtle Lloyd, HMRC’s Chief Customer Officer, added: “Filing your tax return early, making payments on account and setting up a manageable payment plan are three simple steps you can take to help stay in control of your tax affairs, so why not tick off all these at once?

“The deadline for the next Payments on Account is due and it’s the ideal opportunity to file your next tax return early and get a big chunk of tax admin crossed off your to do list.”

Paying your tax return on time avoids any potential penalties and interest as HMRC charges a late payment penalty of £100 from the day after the deadline.

After three months those who still haven’t filed their tax return face an additional penalty of £10 per day, up to a maximum of £900. This increases yet again after six months with a further penalty of 5% of the tax that is due, or £300 – whichever is higher. After 12 months, another 5% – or £300 – will be added.

As such, this takes the total fines in late payments over a period of 12 months up to a hefty £1,600, plus interest on the amount that is owed.

HMRC says payments must be made within 30 days of the date on the penalty notice and you can appeal against a penalty if you have a reasonable excuse.