Millions of workers face ‘automatic’ fines up to £900 if they fail to act before a crucial deadline set out by HMRC. More than 5.4 million Britons have until January 31 to submit their Self Assessment tax returns to the Labour Party government tax department.
Daniel McAfee, Head of Legal Operations at Lawhive said: “Missing the January 31 deadline triggers an automatic £100 penalty, even if no tax is owed. Further delays can lead to additional penalties, which escalate over time, alongside interest on unpaid amounts.”
Failing to meet the deadline incurs a £100 penalty, even if no tax is owed. After three months, daily £10 penalties (up to £900) apply, plus additional fines of five per cent of the tax owed or £300 (whichever is greater) after six and 12 months.
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Not paying on time adds further five per cent penalties on unpaid tax at 30 days, six months, and 12 months, along with interest on the outstanding amount McAfee said: “Failure to act can result in HMRC instructing debt collectors or pursuing a County Court Judgment.”
He said: “Many filers omit income sources or input incorrect figures. Responsibility for determining whether you need to file lies with the individual, not HMRC. Overlooking allowable expenses such as home office costs, mileage, or professional subscriptions can result in overpaying tax.”
He said: “Contact HMRC immediately to request a Time to Pay Arrangement, which allows you to spread the payment over an agreed period.” “Using dedicated apps or software to log income and expenses in real time” can help manage tax obligations, McAfee said.
He added: “Always cross-check communications by logging into your HMRC account or calling their official helpline.” And the expert also warns against clicking links in unsolicited messages, recommending typing the HMRC website URL directly. Suspicious communications should be reported promptly.