Millions of Brits could be slapped with a hefty fine if they fail to act before a fast-approaching national deadline. For lots of us, tax is something we barely consider, as our payslips already include deductions for National Insurance, Tax, and pensions – saving us the bother of doing our own sums.
However, about 12 million people have the added headache of self-assessment tax returns to deal with for HM Revenue and Customs (HMRC). And it isn’t just those who are self-employed; homeowners earning rental income, individuals or pensioners with incomes over £100,000, plus those earning or whose partners earn over £50,000 coupled with Child Benefit claims, all need to submit their forms.
As per the latest update from HMRC on January 6, 2025, some 5.4 million Brits haven’t yet filed their self-assessments.
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To put things into perspective: the tax return must cover the prior tax year, which means this month people should settle their dues for the tax year 2023-2024 (April 6 – April 5). Money-saving expert Martin Lewis has hopped onto X (formerly Twitter) to nudge Brits about the looming 31 January deadline.
His message was clear: “Have you filed your 2023/24 self assessment tax return yet (if you have to do one)? ” he queried. “The deadline’s 31 January. Miss it and it’s [a] £100 fine…” Moreover, Martin highlighted that a late submission past the 11.59pm cutoff on 31 January, 2025, will attract an annual interest charge of 7.25% on whatever amount you owe, reports the Mirror.
“This interest will accrue daily, starting immediately on 1 February,” the Money Saving Expert team clarified. “After 30 days you’ll then also be fined an extra five per cent of the unpaid tax on top. This late fee is then repeated at six months and 12 months.”
If you’ve been slapped with a £100 fine, the government does offer a list of ‘reasonable excuses’ that could help you challenge the penalty.
Common mistakes like making an error on your tax return, not getting a reminder from HMRC, having a cheque bounce or payment fail, or struggling with HMRC’s website are not considered ‘reasonable excuses’. However, there are certain circumstances that may be deemed valid: If you’re still uncertain about whether you need to file a self-assessment, you can check the full criteria online.
Remember, you must inform HMRC by 5 October if you need to complete a tax return and haven’t done so before. You can register for Self Assessment to get started.