Failed to submit tax return on time? Reach out to HMRC promptly to avoid incurring daily fines of £10.
Deadline for 2023/24 Tax Returns Passed, Penalties Enforceable for Late Filers
The deadline for submitting and settling 2023/24 tax returns in the UK was 31st January 2025. According to HMRC, an estimated 1.1 million taxpayers have missed this deadline this tax year.
While not everyone is required to complete a tax return, failure to submit one when expected by HMRC now means late filers are three months overdue. Consequences start to accumulate from this point, with penalties escalating.
Late filers will be charged an initial £100 penalty for even a one-day delay (until February 1st). After three months (May 1st), additional daily penalties of £10, capping at £900, will be imposed.
After six months, a further penalty applies – either 5% of the tax due or £300, whichever is greater. The same penalty applies again once you are 12 months late.
Late payment of tax bills also incurs penalties, even if the return was filed on time. These include 5% of unpaid tax at 30 days, six months, and 12 months, as well as interest at an alarming 8.5% rate (base rate plus 4%).
Alastair Douglas, chief executive at financial services company TotallyMoney, stated, "Despite the January deadline, it's likely that hundreds of thousands of people still haven't filed their tax returns." Douglas added that the initial £100 fine might not have triggered action in some individuals, but late filers can now expect an extra £10 daily penalty.
Penalties must be paid within 30 days of receiving a penalty notice, and late filers can pay by several methods, including bank transfer, debit or credit card, or sending a check. If there's a reasonable excuse, such as family illness or difficulties with HMRC's online services, one can challenge the penalty.
Individuals struggling to pay their tax bills are encouraged to visit the HMRC website to set up a payment plan under a 'Time to Pay' arrangement. Failing to do so can incur penalties.
Not everyone is required to file a self-assessment tax return. If your income is solely from a salary and you're not self-employed, your income tax will be deducted through a process called "pay as you earn" (PAYE). However, if you have additional income through savings, investments, self-employment, or other sources, you may require a tax return.
In recent years, more individuals have found themselves needing to file self-assessment tax returns due to "fiscal drag", a result of high inflation and frozen tax thresholds. This means that tax-free allowances have lost their purchasing power over time, and even some allowances have been reduced, such as the dividend and capital gains allowances.
It is crucial to be aware of the rules to avoid incurring penalties. HMRC's online tool can help you determine whether you need to file a tax return.
The self-assessment tax return deadlines in the UK are as follows:
- Paper tax returns deadline: 31st October
- Online tax returns deadline: 31st January
If the paper deadline is missed, an online submission can be made instead. Both the forms and any tax owed must reach HMRC by midnight on the deadline date.
Moving forward, individuals with various income sources such as savings, investments, self-employment, or other means may need to file a self-assessment tax return to avoid penalties. Delaying the submission of personal-finance documents can result in savings depleting due to escalating fines. After three months, for instance, late filers will face additional daily penalties of £10, up to £900, although reasonable excuses can potentially challenge the penalties.
