HMRC Issues Urgent Warning for UK Taxpayers to Avoid £100 Penalty
UK taxpayers have been issued an urgent alert from HMRC regarding the fast-approaching deadline for self-assessment tax returns. Taxpayers are reminded that they have only until October 31 to submit their paper tax returns or risk a £100 fine.
What is the Self-Assessment Tax Return Deadline?
For those who opt to file by post, the cut-off for submitting self-assessment tax returns is October 31, 2024. Any paper tax returns received after this date will incur a £100 penalty, even if no tax is owed. If you’re unable to meet this deadline, the good news is that you can submit your tax return online, with an extended deadline of January 31, 2025.
Why Does HMRC Issue Penalties for Late Submissions?
HMRC implements penalties to encourage timely submission of tax returns. Self-assessment returns pertain to the 2023/24 tax year, and while most people have their taxes automatically deducted from their salary, others must file a return. This includes self-employed individuals or those who earn additional untaxed income.
Who Needs to File a Self-Assessment Tax Return?
You may be required to file a self-assessment if:
- Your self-employment income exceeded £1,000
- Rental income was above £2,500
- Untaxed income surpassed £2,500
- Income from savings or investments exceeded £10,000
- You are required to pay Capital Gains Tax
- You hold a company directorship, unless in a non-profit organization
- Income or your partner’s income was above £60,000 and Child Benefit is claimed
- You have taxable foreign income
- Your total income was higher than £100,000
What Happens if You Miss the October 31 Deadline?
Missing the October 31 deadline for paper submissions triggers an automatic £100 penalty. This fine is applied even if no tax is owed. If your tax return is delayed by three months, additional daily penalties of £10 (up to a maximum of £900) will be imposed. After six months, a further penalty of 5% of the tax due or £300 (whichever is higher) will be applied, with more penalties imposed after a year.
What Should First-Time Filers Know?
First-time filers need to register on the HMRC website. Technically, the deadline for registration was October 5, so if you haven’t done so yet, you need to act quickly. Once registered, you should receive your Unique Taxpayer Reference (UTR) number within 10 working days, which allows you to submit your self-assessment.
If you already have a UTR number from previous years, the process is simpler as you can skip registration and head straight to filing. Most taxpayers choose to submit online, with over 96% opting for digital returns last year.
Can You File Your Tax Return Online?
Yes, filing online is still an option if you’re running out of time. The deadline for online submissions is January 31, 2025, giving taxpayers more time to gather their paperwork and avoid penalties. However, if you’re submitting by post, you’ll need to ensure that your self-assessment form reaches HMRC before October 31.
How to Avoid Additional Penalties for Late Payment?
It’s not just the tax return that must be filed on time—tax payments are due by January 31, 2025. Late payments will result in an additional 5% charge on any unpaid tax after 30 days. Further penalties of 5% will be added if payments remain outstanding after six and twelve months.
Tax Expert Insights: Trusha Shah on the Importance of Meeting Deadlines
Trusha Shah, Tax Manager at HW Fisher, highlighted the importance of filing on time, stating, “Last year, 96% of people chose to complete their self-assessment tax return online. While most people prefer digital submissions, those submitting by post must remember that October 31 is the final deadline, not the last day to post their return.”
Shah advises taxpayers to act quickly to avoid last-minute stress. “If you are worried about missing the deadline, submitting online offers more time, and HMRC’s digital services are reliable.”
Frequently Asked Questions (FAQ)
Q1: What happens if I miss the October 31 deadline but file before January 31 online?
A: If you miss the paper deadline, you can still file your return online before January 31, 2025, without facing penalties.
Q2: Will I still be fined if I don’t owe any tax?
A: Yes, even if you don’t owe tax, a £100 penalty will apply if you file after the deadline.
Q3: Can I file a tax return after the October 31 deadline by post?
A: No, any paper returns received after October 31 will incur a penalty. You’ll need to file online instead to avoid fines.
