More than 1.1 million UK taxpayers are facing penalties after missing the 31 January deadline for self-assessment tax returns, HM Revenue & Customs (HMRC) has confirmed. While over 11.5 million returns were submitted on time, a significant number of individuals failed to file before the cutoff and are now subject to fines.
How Much Will Late Filers Have to Pay?
If you missed the deadline, you’ll automatically receive a £100 fine, even if you don’t owe any tax. The longer you delay, the higher the penalties:
- After 3 months: Daily fines of £10, up to £900.
- After 6 months: A 5% penalty on tax owed or a minimum of £300.
- After 12 months: Another 5% fine or at least £300.
On top of these penalties, HMRC charges interest on unpaid tax at 7.25%, which will rise to 8.75% in April 2025.
Why Are So Many People Late This Year?
The number of late filers has increased this year, partly due to tax threshold freezes that have been in place since 2022. As wages rise but tax-free allowances stay the same, more people are being pulled into self-assessment without realizing it. Some taxpayers may have been caught off guard, not knowing they needed to file a return at all.
What Can You Do If You Missed the Deadline?
If you haven’t filed yet, act fast to minimize penalties:
- File Your Return Now – The sooner you submit, the fewer fines you’ll face.
- Pay What You Owe – If you can, settle your bill to avoid mounting interest.
- Set Up a Payment Plan – If you can’t afford the full amount, HMRC offers installment options.
- Appeal If You Have a Good Reason – If illness, bereavement, or other serious circumstances prevented you from filing, you may be able to challenge the penalties.
What HMRC Says
Myrtle Lloyd, HMRC’s Director General for Customer Services, thanked those who filed on time and urged late filers to take action immediately.
“Thank you to the millions of people and agents who filed their Self Assessment tax return and paid any tax owed by 31 January. I’m urging anyone who missed the deadline to submit their return as soon as possible to avoid any further penalties.”
How to Avoid Late Fees in the Future
To stay on top of your tax obligations and avoid unnecessary fines next year:
- Set reminders for deadlines in your calendar.
- Keep your records organized so filing is quicker and easier.
- Check if you need to file early, especially if your income has changed.
- Consider professional help if you’re unsure about your tax situation.
With penalties increasing over time, it’s crucial to take action now if you missed the deadline. The longer you wait, the more expensive it gets.
