HMRC issuing fines of up to £900 to millions of workers who missed major deadline

Millions of taxpayers could be hit with a major £900 penalty from if they don't take urgent action. who have not submitted their self-assessment tax returns risk a £10 a day fine from today.

Under the tax rules, workers should have submitted their self-assessment tax return for the 2023-24 tax year by January 31, 2025. If you submitted it after this date, you faced a £100 late filing penalty - even if you had no tax to pay.

If you haven't submitted after three months, additional daily penalties of £10 per day are added, up to a maximum of £900. HMRC estimated that 1.1 million customers missed the initial self-assessment deadline on January 31 this year.

After six months, a further penalty of 5% of the tax due or £300 is then added - whichever is greater. After 12 months, another 5% or £300 charge is added.

There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, six months and 12 months. If the tax remains unpaid after the deadline, interest of 8.5% is also be charged on the amount owed, in addition to the penalties.

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Claire Trott, Head of Advice at St. James’s Place, said: "Whilst completing a tax return is often a dreaded task, and one may choose to put off, getting it sorted now could save you from significant financial penalties down the line."

"It’s important to note that anyone who is currently registered for self-assessment is required to submit a return, whether they owe tax or not, so if you’re in this position, it’s crucial you don’t ignore reminders or warnings from HMRC."

If you are yet to file your self-assessment tax return, then filing now won't remove any existing fines, but it will stop further charges from building. The quickest way to file is through HMRC’s online portal.

Trott noted that speaking to a financial adviser may be worth the cost for those with complex finances, adding: "While the process may seem daunting, there are plenty of tips and guidance available on the HMRC website, and if your finances are particularly complex, speaking to a financial adviser is always a good option for those who are able."

She also explained "the most important thing is not to rush the return process as this could cause you to leave out vital information that could result in paying more tax than necessary."

Most UK taxpayers have their taxes deducted automatically from their wages, or savings, and won't need to file a tax return. But tax returns are due from individuals or businesses that haven't had tax automatically deducted, or that have earned extra untaxed income.

Do I need to submit a self-assessment tax return?

You normally need to file a self-assessment tax return if you're self-employed and your income hasn't had tax automatically deducted, or if you've earned extra cash outside of your normal employment that has not been taxed.

• Your self-employment income was more than £1,000 (before taking off anything you can claim tax relief on)
• Your income from renting out property was more than £2,500 (you’ll need to contact HMRC if it was between £1,000 and £2,500)
• You earned more than £2,500 in untaxed income, for example from tips or commission
• Your income from savings or investments was £10,000 or more before tax
• You need to pay Capital Gains Tax on profits from selling things like shares or a second home
• You’re a director of a company (unless it was a non-profit organisation, such as a charity)
• You, or your partner’s, income was over £50,000 and you’re claiming Child Benefit
• You have income from abroad that you need to pay tax on, or you live abroad but have an income in the UK
• Your taxable income was over £100,000
• If you earn over £50,000 in the 2021/22 tax year and make pension contributions you might have to complete an assessment to claim back the extra tax relief you’re owed
• You’re a trustee of a trust or registered pension scheme
• Your State Pension was your only source of income and was more than your personal allowance
• You received a P800 from HMRC saying you didn’t pay enough tax last year

You can also check online through the to see if you need to send a tax return.

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