As the January 31st Self Assessment tax deadline passes, millions of UK taxpayers are facing penalties from HM Revenue and Customs (HMRC) for missing the submission date. With an estimated 5.4 million tax returns still outstanding before the deadline, many individuals are now subject to an automatic £100 fine – regardless of whether they owe tax or not.

Over a Million Face Immediate Fines

According to HMRC, around 11.5 million people managed to submit their tax returns on time for the 2023-24 tax year. However, over one million taxpayers missed the deadline, and they will now incur financial penalties.

The penalties start at £100 but can increase significantly if the return remains unfiled for longer periods. HMRC has strict rules in place to encourage timely compliance, and those who fail to meet their obligations could end up paying hundreds or even thousands of pounds in fines.

How Much Will Late Filers Be Fined?

If you missed the deadline, here’s what you need to know about HMRC’s penalty structure:

• Missed Deadline (From February 1st) – An immediate £100 fine, even if you owe no tax or have already paid.
• Three Months Late – A £10 daily penalty for up to 90 days, totaling a maximum of £900.
• Six Months Late – An additional penalty of 5% of the tax owed or £300, whichever is greater.
• Twelve Months Late – A further 5% of the tax owed or £300, whichever is greater.

In addition to these fines, interest will be charged on any unpaid tax starting from February 1st, 2025.

Who Needs to File a Self Assessment Tax Return?

Self Assessment tax returns are required for individuals who:

• Are self-employed and earned over £1,000 in the last tax year.
• Earned income from renting out property.
• Had an income of over £100,000.
• Claimed child benefit while earning over £50,000 (subject to the High Income Child Benefit Charge).
• Earned untaxed income, such as from investments or dividends.

If you’re unsure whether you need to file a tax return, HMRC provides an online tool to check your requirements here.

Record-Breaking Last-Minute Filings

Despite millions missing the deadline, HMRC reported a last-minute surge in submissions, with over 60,000 tax returns filed in the final hour before midnight on January 31st.

A spokesperson from HMRC stated:
“We appreciate that many taxpayers leave it to the last minute, but those who have missed the deadline should act as soon as possible to minimize penalties.”

Can You Appeal a Late Filing Penalty?

If you have a reasonable excuse, you may be able to appeal the fine. HMRC considers appeals in situations such as:

• A serious illness or hospitalization that prevented filing.
• A death of a close relative around the time of the deadline.
• Technical issues that were beyond your control.

However, forgetting the deadline or not realizing you needed to file will not be accepted as a valid excuse. Appeals can be made through the official HMRC appeals process.

How to File Your Tax Return Now

If you have missed the deadline, it’s crucial to file your tax return as soon as possible to avoid escalating penalties.

You can file online via HMRC’s Self Assessment portal. If you do not already have a Government Gateway account, you will need to register before filing.

What Happens if You Can’t Pay Your Tax Bill?

If you owe tax but cannot afford to pay, HMRC offers a “Time to Pay” arrangement, which allows you to set up a payment plan.

To apply for a payment plan, visit the HMRC payment page and follow the steps to arrange a repayment schedule.

Final Thoughts

With over a million taxpayers now facing fines, it’s more important than ever to stay on top of your tax obligations. The penalties for late filing increase the longer you delay, so if you missed the January 31st deadline, act immediately to limit additional charges.