HM Revenue and Customs (HMRC) has warned that 5.4 million people still need to complete and pay their Self Assessment before the deadline at the end of this month to avoid a fine. Those who are required to file a tax return for the 2023/24 tax year but miss the January 31 2025 deadline could face an initial late filing penalty of £100, which applies even if there is no tax to pay.
HMRC also confirmed that some 38,260 taxpayers filed their Self Assessment on Hogmanay while a further 24,828 submitted their tax returns on New Year’s Day. HMRC said that some 97 per cent of customers now file online and one benefit is that they don’t have to complete it all in one go, they can save what they have done and pick it up again later.
Once a tax return is filed, payments can also be made quickly and securely through the HMRC app. Customers can set up notifications in the app to remind them when payments are due, so they don’t need to worry about missing deadlines or penalties. Information about the different ways to pay can be found on GOV.UK.
HMRC has a wide range of resources online including a series of video tutorials on YouTube, help and support on GOV.UK, to support customers in completing their tax return.
Myrtle Lloyd, HMRC’s director general for customer services, said: “We know completing your tax return isn’t the most exciting item on your new year to-do list, but it’s important to file and pay on time to avoid penalties or being charged interest.
“The quickest and easiest way to complete your tax return and pay any tax owed is to use HMRC’s online services – go to gov.uk and search ‘self assessment’ to get started now.”
For people who can’t meet the tax return deadline, HMRC will treat those with reasonable excuses fairly if they tell us before January 31.
The penalties for late tax returns are:
- 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 per cent 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.
Who needs to file a Self Assessment?
Taxpayers may need to complete a tax return, even if they pay taxes through PAYE, for example, if they:
- are self-employed and have earned gross income over £1,000
- are self-employed and earned up to £1,000 and wish to pay Class 2 NICs voluntarily to protect their entitlement to State Pension and certain benefits
- are a partner in a business partnership
- had a total taxable income of more than £150,000
- have received any untaxed income including pension income over £2,500
- received income over £1,000 from trading or providing services online
- have to pay the High Income Child Benefit charge
- received interest from banks and building societies or investments (more than £10,000)
- received rental or letting income from UK land and property
If someone regularly sells goods or provides services through an online platform, they may need to pay tax on their income.
People can find out more about selling online and paying taxes on GOV.UK by searching ‘online platform income’ or by downloading the HMRC app. The guidance will help them decide if their activity should be treated as a trade and if they need to complete a Self Assessment tax return.