The deadline for submitting your self-assessment tax return is approaching rapidly, with a £100 penalty awaiting those who miss it, enforced by HMRC. You must file your tax return for the 2024/25 tax year by midnight on January 31. As of January 23, HMRC has noted that 3.3 million individuals still need to complete their submissions.
There are several reasons why you might need to file a self-assessment tax return, including being self-employed, earning additional income beyond your primary employment, deriving income from property rentals, or being a high earner receiving Child Benefit.
Failure to submit your self-assessment by the deadline will result in a £100 fine from HMRC, regardless of whether you owe any taxes. The penalty increases for late filings, escalating to fines of £10 per day, up to a maximum of £900 after three months. If you still haven’t filed after six months, you face a charge of 5% of the tax owed or £300, whichever is higher, with this cycle repeating every 12 months.
To avoid interest on overdue tax payments, ensure that any tax owed is paid by January 31. If you are struggling to settle your tax bill and owe less than £30,000, you may qualify for a Time to Pay arrangement with HMRC. To be eligible, you must not have existing payment plans or debts with HMRC, have up-to-date tax returns, and seek assistance within 60 days of the payment deadline.
It is crucial to have registered for self-assessment by October 5 of the previous year. According to MoneyHelper.org.uk, you may need to file a self-assessment tax return under certain circumstances. You can also verify your filing requirements by visiting the HMRC website.
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