HM Revenue and Customs (HMRC) has issued a warning to UK households, urging them to take action this May or risk facing a £900 fine. Taxpayers are being reminded to pay their Self-Assessment tax after the May 1 deadline passed. Those who missed the original January 31 deadline for the 2024/25 tax returns now face daily penalties of £10 per day, which began on May 1.
The daily penalty is capped at £900. May 1 marked three months since the first deadline, triggering additional daily penalties. After six months, those who still have not filed their return could face a further penalty of 5% of the tax due or £300, whichever is greater. After 12 months, another 5% or £300 charge, whichever is greater, may apply. If tax remains unpaid after the deadline, interest may also be charged on the amount owed.
Failure to Notify Penalty
If you register after October 5 and do not pay your tax bill by January 31, you may receive a 'failure to notify' penalty. This penalty is based on the amount still left to pay and will be issued within 12 months after HMRC receives your Self-Assessment tax return.
Late Filing Penalties
You will incur a penalty if you need to complete a tax return and send it late or pay your tax bill late. The late filing penalties are as follows:
- An initial £100 penalty
- After 3 months, additional daily penalties of £10 per day, up to a maximum of £900
- After 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
- After 12 months, another 5% or £300 charge, whichever is greater
Late Payment Penalties
If you pay your tax late, you will face penalties of 5% of the unpaid tax at 30 days, 6 months, or 12 months.
HMRC continues to remind taxpayers to act promptly to avoid these escalating fines and interest charges.
