His Majesty’s Revenue and Customs (HMRC) will start issuing £100 fines to UK households from January if they miss an important deadline.
The government body has warned that there is now just over a month left for people to file and pay their Self Assessment tax return by midnight on January 31, 2025.
HMRC says online tax returns for the 2023 to 2024 tax year must be paid by this date or you will be hit with a penalty.
You must pay a late filing fine of £100 if your tax return is up to three months late and this fee can increase even further if it’s later, or if you pay your tax bill late. You’ll also be charged interest on late payments.
You can appeal against a penalty if you have a reasonable excuse that stopped you from meeting the deadline, which can include any of the following:
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your partner or another close relative died shortly before the tax return or payment deadline
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you had an unexpected stay in hospital that prevented you from dealing with your tax affairs
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you had a serious or life-threatening illness
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your computer or software failed just before or while you were preparing your online return
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service issues with HMRC online services
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a fire, flood or theft prevented you from completing your tax return
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postal delays that you could not have predicted
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delays related to a disability or mental illness you have
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you were unaware of or misunderstood your legal obligation
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you relied on someone else to send your return and they did not
HMRC says you must send your tax return or payment as soon as possible after your reasonable excuse is resolved. You cannot blame a cheque being bounced or a failed payment for missing the deadline, or say you submitted it late because HMRC didn’t send you a reminder.
You are required to submit a tax return to HMRC if, in the last tax year from April 6, 2023, to April 5, 2024, any of the following applied:
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you were self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on)
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you were a partner in a business partnership
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you had a total taxable income of more than £150,000
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you had to pay Capital Gains Tax when you sold or ‘disposed of’ something that increased in value
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you had to pay the High Income Child Benefit Charge
You may also need to send a tax return if you have any untaxed income from things like renting out a property, income from savings, investments and dividends, tips and commission, or foreign income.
HMRC adds that anyone unable to pay their tax bill in full by the January deadline can spread the cost using its online ‘Time to Pay’ system.
Anyone unable to pay their tax bill in full, owes less than £30,000 and is eligible, can apply online without having to contact HMRC directly, while those that owe more than £30,000 can still apply but need to contact HMRC.
Taxpayers must file their Self Assessment tax return before setting up a Time to Pay arrangement.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We’re here to help customers get their tax right and if you are worried about how to pay your Self Assessment bill, help and support is available.
“Customers can set up their online payment plan to suit their own financial circumstances and can spread those payments across a maximum of 12 months. It is a valuable option for someone needing extra flexibility in meeting their tax obligations.”
