Round a million individuals missed the deadline to file their self-assessment tax return, leaving them dealing with automated penalties, in keeping with HM Income and Customs.
HMRC stated 27,456 taxpayers filed within the remaining hour earlier than the midnight cut-off on the finish of Saturday, after the tax authority stored helplines open and prolonged webchat providers over the weekend in a bid to assist late filers.
The busiest interval for on-line submissions was between 5pm and 6pm on Saturday. In whole, 475,722 individuals filed on the ultimate day, bringing the general variety of submissions for the 2024–25 tax 12 months to round 11.5 million.
Anybody who did not file on time now faces an automated £100 penalty, even when there isn’t a tax to pay or the tax owed has already been settled.
Myrtle Lloyd, HMRC’s chief buyer officer, stated: “Thanks to the tens of millions of individuals and brokers who filed their self-assessment tax return and paid any tax owed by 31 January. Anybody who missed the deadline ought to file their return as quickly as potential, as penalties and late fee curiosity could also be charged.”
Whereas most staff pay tax robotically by means of PAYE, self-assessment stays obligatory for individuals with extra revenue. This consists of these incomes greater than £1,000 from self-employment, or from renting out property or land in the course of the tax 12 months.
Some people have been not required to submit a return this 12 months, together with these whose solely earlier cause for submitting was incomes greater than £150,000, or mother and father who now pay the excessive revenue youngster profit cost by means of PAYE as a substitute of self-assessment.
An analogous variety of taxpayers missed the deadline final 12 months. HMRC’s penalty regime escalates the longer a return stays excellent. Along with the preliminary £100 advantageous, late filers can face day by day penalties of £10 after three months, capped at £900, adopted by additional penalties after six and 12 months.
Separate penalties additionally apply for paying tax late, with 5% surcharges utilized after 30 days, six months and 12 months, alongside curiosity on unpaid balances.
HMRC stated it is going to think about affordable excuses for lacking the deadline and should cancel penalties the place applicable. Nevertheless, tax consultants warn in opposition to delaying motion.
Charlene Younger, senior pensions and financial savings professional at AJ Bell, stated: “Even should you intend to enchantment a penalty, it’s typically wise to pay it upfront to keep away from curiosity being added if the enchantment fails. When you owe tax and may’t pay in full, a fee plan could also be obtainable — however ignoring the issue will solely make it worse.”
