The deadline for submitting your self-assessment tax return is approaching rapidly. Failure to meet the deadline will result in an immediate £100 penalty from HMRC. The cutoff time for filing your tax return for the 2024/25 tax year is midnight on January 31. According to the latest update from HMRC, as of January 23, 3.3 million individuals still need to file their returns.
Various circumstances necessitate filing a self-assessment tax return. For instance, if you are self-employed or have earned additional income beyond your primary employment, you are required to file. Additionally, individuals earning income from property rentals or high earners claiming Child Benefit must also undergo self-assessment.
Submitting your self-assessment after the deadline will incur a £100 penalty from HMRC, regardless of whether you owe any taxes. The penalty escalates to daily fines of £10, up to £900 after three months. Subsequently, after six months, a charge of 5% of the tax owed or £300 (whichever is higher) applies, with a repeat after 12 months.
Payment of any outstanding tax is due by January 31 to avoid accruing interest on late payments. Failure to pay results in an additional penalty of 5% of the unpaid tax after 30 days, with repeated fines at six and 12 months.
Individuals facing difficulty paying their tax bill and owing less than £30,000 may qualify for a payment plan with HMRC called “Time to Pay.” To be eligible, no other payment plans or debts with HMRC should exist, tax returns must be up to date, and assistance must be requested within 60 days of the payment deadline.
It is imperative to have registered for self-assessment by October 5 of the previous year. MoneyHelper.org.uk states that a self-assessment tax return may be required based on specific criteria. Additionally, you can verify your obligation to file a tax return through the HMRC website.
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