The deadline for submitting your self-assessment tax return is fast approaching. Failure to meet the deadline will result in an immediate £100 penalty from HMRC. The deadline for the 2024/25 tax year is midnight on January 31, with HMRC reporting that 3.3 million individuals still need to file their returns as of January 23.
There are various reasons why you may need to file a self-assessment tax return. This includes being self-employed, earning additional income beyond your primary job, generating income from property rentals, or claiming Child Benefit as a high earner.
If you miss the deadline, HMRC will impose a £100 fine, even if you have no tax liability but are registered for self-assessment. The penalty escalates to £10 per day, up to a maximum of £900, for delays exceeding three months. Additionally, after six months, a charge of 5% of the tax owed or £300 (whichever is higher) applies, with a repeat after 12 months.
It is essential to settle any tax owed by January 31 to avoid incurring interest on late payments. Failure to pay promptly results in a 5% penalty on the outstanding tax after 30 days, with subsequent increments at six and twelve months.
For individuals struggling to pay taxes under £30,000, HMRC offers a payment plan called “Time to Pay.” To be eligible, you must not have existing payment plans or debts with HMRC, have up-to-date tax returns, and request assistance within 60 days of the payment deadline.
Remember to have registered for self-assessment by October 5 of the previous year. If uncertain whether you need to file a self-assessment tax return, consult resources like MoneyHelper.org.uk or check the HMRC website for guidance.