HMRC Issues Warning on Self-Assessment Tax Return Deadline as Millions Face £100 Fine

With the January 31 deadline fast approaching, HM Revenue and Customs (HMRC) is urging millions of taxpayers to submit their Self-Assessment tax returns on time to avoid facing a £100 penalty. As of now, around 8.6 million individuals have already filed their tax returns for the 2023/24 year, but millions more are still at risk of being fined if they fail to meet the deadline.

Key Points:

• Deadline Alert: January 31 is the final day to file your tax return to avoid a £100 penalty.
• Immediate Penalties: Missing the deadline results in a fixed £100 fine, even if no tax is due.
• Additional Penalties: Late submissions can lead to further fines as time goes on. After 3 months, daily charges of £10 apply, which can quickly add up to a maximum of £900. After 6 months, a 5% penalty of the tax due is imposed, with another 5% after 12 months.

HMRC’s Warning:

Myrtle Lloyd, the Director General for Customer Services at HMRC, stressed that time is running out for those who still need to submit their returns. She advised taxpayers to take action quickly and reminded them that support is available through GOV.UK or by searching ‘self-assessment’.

“Time is running out for the millions still to file their self-assessment tax return by January 31. Help and support is available for those who have not yet started their return,” Myrtle Lloyd said.

What You Need to Know:

• Bank Details Required: It’s important to provide your bank details when filing, as this helps HMRC process any repayments quickly and securely.
• Penalty Exceptions: HMRC may be lenient for those who have reasonable excuses for missing the deadline. Individuals should contact HMRC as soon as possible if they are unable to meet the deadline.
• Support for First-Timers: For those filing for the first time, Andrew Bartlett, CEO of Advice Direct Scotland, assures that help is available. “Our advisers can assist people struggling to fill in their Self Assessment forms or who have any other queries about their tax obligations, completely free of charge.”

Penalties for Late Tax Returns:

HMRC has laid out clear penalty structures for late submissions. Here’s what you could face:

1. £100 Fixed Penalty: Applied as soon as the deadline passes, even if no tax is due.
2. Daily Penalties: After 3 months, an additional £10 per day penalty is added, up to a maximum of £900.
3. 6-Month Penalty: At 6 months, you’ll incur a penalty of 5% of the tax due or £300, whichever is higher.
4. 12-Month Penalty: Another 5% or £300 charge is added.

Who Needs to File a Self-Assessment?

Although most people pay taxes through PAYE (Pay As You Earn), some individuals may still need to submit a Self-Assessment. You need to file a return if:

• You are self-employed and earn more than £1,000 in gross income.
• You wish to pay voluntary Class 2 NICs to protect your State Pension and certain benefits.
• You are a partner in a business partnership.
• Your total taxable income exceeds £150,000.
• You receive untaxed income (e.g., pension income over £2,500).
• You earn income from online trading or services.
• You need to pay the High Income Child Benefit charge.
• You earn interest from banks or investments over £10,000 or rental income from UK property.

Special Attention for Online Sellers:

If you sell items or provide services through online platforms, you might need to pay taxes on your earnings. HMRC has specific guidelines for individuals in this situation. To find out if you need to file a Self-Assessment, visit GOV.UK and search for ‘online platform income.’

Resources for Help:

HMRC provides a wide range of resources to help taxpayers complete their returns. These include:

• Video Tutorials: Available on YouTube.
• Step-by-Step Guides: Found on GOV.UK, offering clear instructions on filling out your tax return.

Andrew Bartlett reminds people who haven’t yet filed their returns, “Don’t delay any longer. The fines can add up quickly, so take action now before it’s too late.”

Tips for Avoiding Fines:

1. File Early: Don’t wait until the last minute to avoid the risk of missing the deadline.
2. Seek Help: Use the resources available to get help with completing your return.
3. Provide Bank Details: Include your bank account information to make any repayments faster.

HMRC’s warning is clear—act quickly to avoid costly penalties. With just a few days left before the January 31 deadline, make sure to file your Self-Assessment tax return on time.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.