The deadline for submitting your self-assessment tax return is approaching rapidly, and failure to meet it will result in an immediate £100 penalty from HMRC. The cutoff for filing your tax return for the 2024/25 tax year is midnight on January 31. HMRC has indicated that as of January 23, 3.3 million individuals still need to file their returns.
Various circumstances may necessitate filing a self-assessment tax return, such as being self-employed or earning additional income beyond your primary job. Additionally, individuals who generate income from property rentals or high earners claiming Child Benefit may also be obligated to complete self-assessment.
Late submissions of self-assessment will incur a £100 penalty from HMRC, irrespective of whether any tax is owed if you are registered for self-assessment. The penalty escalates to £10 per day up to a maximum of £900 after three months of non-compliance. Subsequently, after six months, a penalty equivalent to 5% of the tax owed or £300, whichever is higher, is imposed, with this cycle repeating after 12 months.
It is essential to settle any tax liabilities by January 31 to avoid accruing interest on overdue payments. Failure to do so will lead to an additional 5% penalty on the outstanding tax after 30 days, with further penalties at the six-month and 12-month marks.
Individuals facing difficulty in paying their tax bill, owing less than £30,000, may qualify for a payment plan called “Time to Pay” with HMRC. To be eligible, no other payment plans or debts with HMRC should exist, up-to-date tax returns must be in place, and assistance should be sought within 60 days of the payment deadline.
Furthermore, registration for self-assessment should have been completed by October 5 of the previous year. MoneyHelper.org.uk outlines circumstances where filing a self-assessment tax return may be necessary. Checking the HMRC website can also clarify whether a tax return submission is required.