The deadline for submitting your self-assessment tax return is approaching, and failure to meet it will result in an immediate £100 fine from HMRC. The cutoff time for filing your tax return for the 2024/25 tax year is midnight on January 31. HMRC’s recent update indicates that as of January 23, 3.3 million individuals still need to file their returns.
Various circumstances necessitate the filing of a self-assessment tax return, such as being self-employed or earning additional income beyond your primary employment. If you receive income from property rentals or claim Child Benefit as a high earner, you may also be obligated to complete a self-assessment.
Submitting your self-assessment after the deadline will incur a £100 penalty from HMRC, regardless of whether you have any tax liabilities but are registered for self-assessment. Failure to file after three months escalates the fine to £10 per day, up to a maximum of £900. Subsequently, after six months, a penalty of 5% of the tax owed or £300 (whichever is higher) is imposed, with a repeat at the 12-month mark.
It is essential to settle any outstanding tax by January 31 to avoid incurring interest on late payments. Additionally, late tax payments will attract a 5% penalty after 30 days, which is repeated at six months and twelve months.
Individuals facing difficulty in settling their tax bill and owing less than £30,000 may qualify for a payment plan called “Time to Pay” with HMRC. 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.
Registration for self-assessment should have been completed by October 5 of the previous year. MoneyHelper.org.uk outlines instances where filing a self-assessment tax return may be necessary. Alternatively, you can use the HMRC website to determine if you are required to submit a tax return.