With only one week to go until the 31 January Self Assessment deadline, HMRC reports that 3.8 million people are still yet to file their tax return are urged to act now or risk facing a £100 penalty.
For the year 2022 to 2023 HM Revenue and Customs (HMRC) is expecting more than 12.1 million tax returns to be filed, to date (23 January 2024) 8.3 million returns have been received by them.
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
HMRC will consider a customer’s reasons for not being able to meet the deadline. Those who provide a reasonable excuse may avoid a penalty.
There are also additional penalties for paying outstanding tax late. These are 5% of that unpaid at 30 days, 6 months and 12 months. Interest will also be charged on any tax paid late.