With less than a month to go to the Self Assessment deadline, HMRC is urging millions to file their tax return or risk a £900 fine.
The deadline to file a tax return for the 2022 to 2023 tax year and pay any tax owed is 31 January 2024.
Customers can submit their tax returns and pay any tax owed online at GOV.UK.
People who miss the self-assessment deadline face a penalty of £100 if their tax return is up to three months late.
Further fines of £10 a day are applied after three months, up to a maximum of £900.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “The clock is ticking for those customers yet to file their tax return.
“Don’t put it off, kick start the new year by sorting your Self Assessment. Go to GOV.UK and search ‘Self Assessment’ to get started start today.”
The “quickest and easiest way” customers can pay their tax bill is via HMRC’s app which is free and secure. Information about the different ways to pay, can be found on GOV.UK.
Commenting ahead of the imminent tax return deadline, Dawn Register, Head of Tax Dispute Resolution at BDO said: “It’s very important to make sure that you get your tax return right, but one of the costliest mistakes you can make is not to file on time.
“There is an automatic £100 late filing penalty if your 2022/23 tax return is submitted after January 31, 2024 and this increases to £10 a day if you are more than three months late.
“And if you don’t pay your tax on time, you may be charged late payment interest. The rate of late payment interest is now 7.75 percent, the highest level for 15 years – and there’s a five percent penalty charged on tax outstanding on March 1, 2024, with further penalties if the tax is more than six months late.
“If you’re going to struggle to pay on time, it’s always worth speaking to HMRC. You can also look at setting up a Time to Pay arrangement online if you owe under £30,000.
HMRC may be able to help by arranging an affordable payment plan, known as Time to Pay for those who owe less than £30,000.
Customers can arrange this themselves online. Go to GOV.UK and search “HMRC payment plan” for more information.
HMRC will consider a customer’s reasons for not being able to meet the deadline. Those who provide HMRC with a reasonable excuse may avoid a penalty.
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 five percent of the tax due or £300, whichever is greater
- after 12 months, another five percent or £300 charge, whichever is greater
There are also additional penalties for paying late of five percent of the tax unpaid at 30 days, six months and 12 months. Interest will also be charged on any tax paid late.
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.
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.
