Nearly 4m people risk £100 penalty as self assessment tax return deadline approaches
HMRC says 3.8m people are yet to file their taxes, with a week before the 31st January deadline
With only one week to go until the Self Assessment deadline, HMRC is urging the 3.8 million people yet to file their tax return to get a move on.
HM Revenue and Customs is expecting more than 12.1 million tax returns to be filed for the 2022 to 2023 tax year along with any payment that is owed by the 31st of January.
To date more than 8.3 million online returns have already been received.
Penalty for not paying your tax
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
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
“If you are a Self Assessment taxpayer, now is the time to take action and get your return done. People can familiarise themselves with the process by checking out HMRC’s online resources on GOV.UK.
“Once a tax return is submitted, it’s easy to find out what’s owed and to pay online or using the HMRC app. Just search ‘pay my Self Assessment’ on GOV.UK to find out more.”
What if you can't pay your tax bill?
For anyone unable to pay in full, HMRC says it wants to help find "an affordable way to pay the tax they owe."
You may be able to set up a 'Time to Pay' arrangement online if you owe less than £30,000.
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.
HMRC also advises, when completing a return, to make sure your bank account details are included, so that if they need to make a repayment, they can do so without needing to issue a cheque.