3.4 Million Face Penalty As Self Assessment Deadline Looms

With only a week left until the deadline, 3.4 million taxpayers risk a £100 penalty for failing to file their Self Assessment tax returns for the 2023/2024 tax year. HM Revenue and Customs (HMRC) is urging customers to submit their returns and settle any outstanding tax payments by January 31st, 2025.

Taxpayers can file their returns online at GOV.UK, where they can access a range of support resources, including live webinars, video tutorials, and online help sheets. HMRC recommends using the free and secure HMRC app for quick and easy tax payments, with immediate confirmation of payment.

HMRC is encouraging taxpayers to file their returns and make any necessary payments before the deadline to avoid potential penalties.

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 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."

A full list of the different ways to pay, including payment plans, can be found on GOV.UK. It's important customers always include their bank details as part of their tax return to ensure that if there's any repayment due, it can be done quickly and securely.

Customer's reasons for not paying their tax bill or arranging a payment plan by the deadline will be considered individually. While customers who provide HMRC with a reasonable excuse may avoid a penalty, those without reasonable excuse face will be issued with a penalty including:

• an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time 

• after 3 months, additional daily penalties of £10 per day, up to a maximum of £900 

• after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater 

• after 12 months, another 5% or £300 charge, whichever is greater 

There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months. If tax remains unpaid after the deadline, interest will also be charged on the amount owed, in addition to the penalties above.

Customers need to be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone, including a tax agent, if they have one. HMRC scams advice is available on GOV.UK.