HM Revenue and Customs (HMRC) is urging millions of UK households to take action in May to avoid risking fines of up to £900. The warning applies to those who missed the deadline earlier this year for tax returns as they now face daily penalties this month.
Taxpayers are being reminded to file their Self-Assessment tax after the passing of the May 1 deadline. Those who missed the original January 31 deadline for 2024/25 tax returns now face daily penalties of £10 per day this month. The accruing penalty is capped at £900, with people urged to file their returns as soon as possible to prevent further fines. An automatic £100 penalty was triggered for missing the deadline earlier this year, with HMRC revealing that around two million people were cutting it fine to file their return.
As reported by Birmingham Live, after six months those who have still failed to file their return could be hit by a further penalty of 5% of the tax due or £300, whichever is greater. There could then be another 5% or £300 charge, whichever is greater, after 12 months.
If tax remains unpaid after the deadline, interest may also be charged on the amount owed. If you register after October 5 and do not pay all of your tax bill by January 31, you may get a “failure to notify” penalty which is based on the amount still left to pay.
HMRC previously said that over 10 million people completed their returns on time in January. Meanwhile, over 12 million were expected to file a self-assessment for the current tax year.
Richard Murphy, Director at Tax Research LLP, added: “Tax is hard. Getting it right is harder still. Taking time to do that is essential, and doing it early takes away the panic that happens late in the year when so many mistake are made. Get your tax done now then, sleep easier as a result, and avoid the risk of penalties.”
According to HMRC, you’ll get a penalty if you need to complete a tax return and you:
- send your return late
- pay your tax bill late
If you send your tax return late, you’ll get the following late filing penalties:
- an initial £100 penalty
- 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
If you pay your tax late, you’ll get penalties of 5% of the tax unpaid at:
You can appeal against the penalty if you have a “reasonable excuse” such as a severe illness or serious computer failure. You can also ask HMRC to withdraw a penalty if it was issued in error.