Financial guru Martin Lewis has issued an urgent plea to millions of people across the UK, stressing that time is running out to meet a critical tax deadline. The Money Saving Expert founder has highlighted the fast-approaching cut-off of January 31 for submitting self-assessment tax returns to HM Revenue and Customs (HMRC).
Who Needs to File a Return and The Rising Numbers
Lewis emphasised that the obligation is clear for anyone who has received a formal letter from HMRC instructing them to complete a return. "If you’ve been sent a self-assessment tax form to do it, you have to do it, even if you don’t think you have to," he stated. This is particularly relevant for higher-rate taxpayers and individuals with complex financial affairs.
The warning comes as new data reveals a significant increase in the number of people being contacted by the tax authority. A freedom of information request showed that more than 1.3 million people received letters for the 2023-24 tax year, a sharp rise from 675,000 in 2021-22.
Beyond those contacted directly, Lewis outlined other key groups who must file, even without a letter. These include:
- Self-employed individuals who earned over £1,000 between April 6, 2024, and April 5, 2025.
- Anyone receiving Child Benefit who had an individual income exceeding £60,000 in the tax year and hasn't adjusted their tax code.
- Individuals who earned over £10,000 from savings interest or investment dividends.
The Cost of Missing the Deadline
The consequences of inaction are financially punitive. Missing the January 31 deadline triggers an immediate £100 fixed penalty, applicable even if you owe no tax or have already paid your bill. More costly, however, is the interest charged at 7.75% on any unpaid tax from the deadline date.
Lewis offered crucial advice for those struggling to complete their forms in time. "Even if you can’t do the form in time, have a rough guess of what you owe and pay that," he recommended in a video on X. This proactive payment can significantly reduce the interest accrued, even if the return itself is submitted slightly late and the figure needs adjusting later.
Avoid the Last-Minute Rush and Stress
With an estimated 5.6 million people yet to file, Lewis warned against leaving the task to the final days. He highlighted that HMRC phone lines become increasingly congested, and professional accountants are at their busiest, making it harder to get help.
"Doing it early will relieve some of that pain, though you’ll still have to pay," he noted, urging people to act now to avoid unnecessary stress and potential financial penalties. The message is clear: with the deadline looming, immediate action is essential for millions to stay on the right side of the taxman.
