HMRC warning as households urged to take action this May – £900 fines | Personal Finance | Finance
Brits should act to avoid being fined this month (Image: Getty)
Brits who missed the deadline for filing their tax return or paying tax are being urged to act this month in order to avoid a hefty fine. HM Revenue and Customs (HMRC) is continuing to remind taxpayers to pay 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. It is believed that around two million people faced the deadline earlier this year, with an automatic £100 penalty triggered for missing it. HMRC previously confirmed that over 10 million people completed their returns on time, while over 12 million were expected to file a self-assessment for the current tax year.
As May 1 marked three months since the first deadline, additional daily penalties of £10 now apply. 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.
Tom Wallace, director of tax investigations at WTT Consulting, told the Daily Express: “Where people have failed to file their self-assessment return, it is now 3 months late meaning that HMRC will now be charging daily penalties of £10 per day. This is on top of the fixed penalty of £100 for missing the deadline, and a possible 5% surcharge on any tax that should have been paid by 31 January. These daily penalties will be chargeable for up to 90 days but can be brought to an end by filing the return as soon as possible.”
He added: “In my experience, where people have returns outstanding at this point it is likely because they do not believe they need to file a return, or they have moved address without telling HMRC and therefore did not receive the notice to file. It is important that people check their personal tax accounts online to see if any return is outstanding, particularly where they have filed one in previous years. It should be remembered that self-assessment is not just for the self-employed, and if HMRC have asked you to file a return then you must do so unless they withdraw that request formally.
“For those that have been charged penalties, there is an opportunity to appeal them. However, you must have a reasonable excuse for the failure to submit a return, and then file your return as soon as possible after that excuse ends.”
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.”
Those who missed the deadline should complete their tax return as soon as possible (Image: Getty)
HMRC added: “If you register after 5 October and do not pay all of your tax bill by 31 January, you may get a ‘failure to notify’ penalty. This penalty is based on the amount still left to pay and you’ll receive it within 12 months after HMRC receives your Self Assessment tax return.”
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:
However, 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 or you did not need to submit a return in the first place.
