UK households have been issued an urgent warning they face a £100 fine if they miss an important tax deadline next week.
His Majesty’s Revenue and Customs (HMRC) says there is now only a week left for Self Assessment tax returns for the 2023 to 2024 tax year to be filed and paid, yet 3.4 million people still haven’t done it.
Anyone who fails to submit their Self Assessment by midnight on January 31 will be hit with a fixed £100 late filing penalty – even if there is no tax to pay.
After three months, those who still haven’t filed their tax return will face an additional penalty of £10 per day, up to a maximum of £900. This will increase 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.
HMRC warns if the tax remains unpaid after the deadline, interest will also be charged on the amount that is owed, in addition to the extra penalties outlined above.
The government body says customers’ reasons for not paying their tax bill, or arranging a payment plan, by the January 31 deadline, will be considered individually. Only those who provide a reasonable excuse may avoid a penalty and those without will face a fine.
HMRC says a reasonable excuse can include any of the following:
your partner or another close relative died shortly before the tax return or payment deadline
you had an unexpected stay in hospital that prevented you from dealing with your tax affairs
you had a serious or life-threatening illness
your computer or software failed just before or while you were preparing your online return
service issues with HMRC online services
a fire, flood or theft prevented you from completing your tax return
postal delays that you could not have predicted
delays related to a disability or mental illness you have
you were unaware of or misunderstood your legal obligation
you relied on someone else to send your return and they did not
You must send your tax return or payment as soon as possible after your reasonable excuse is resolved. You cannot blame a cheque being bounced or a failed payment for missing the deadline, or say you submitted it late because HMRC didn’t send you a reminder.
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 January 31. 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.”
Anyone unable to pay their tax bill in full by the deadline can spread the cost using HMRC’s online ‘Time to Pay’ system, but you must file your Self Assessment tax return before setting this up.
If you can’t pay your tax bill in full, or you owe less than £30,000 and are eligible, you can apply online without having to contact HMRC directly, while those that owe more than £30,000 can still apply but need to contact HMRC.