HMRC is set to issue £100 fines to hundreds of thousands of basic-rate taxpayers after a missed self-assessment deadline. According to data from HMRC and the Labour Party government, 180,000 self-employed filers submitted their returns late in the 2023-24 tax year.
Of these, 94 per cent—amounting to 169,000 individuals—were either below the basic rate or basic rate taxpayers. Among those below the basic rate, six per cent filed after the January 31 deadline, compared with 3.1 per cent of basic rate taxpayers. In contrast, only 2.7 per cent of higher rate taxpayers and 2.6 per cent of additional rate taxpayers missed the deadline, according to calculations from PensionBee.
Under HMRC rules, anyone who misses the self-assessment deadline automatically incurs an initial £100 penalty. Lisa Picardo, chief business officer UK at PensionBee, commented: “Late filing of self-assessment tax returns is not evenly spread across the self employed population. It’s heavily concentrated among those on lower incomes, many of whom sit within what we describe as the ‘invisible workforce’.”
She added: “For many of these workers, unpredictable income and limited support make it genuinely harder to stay on top of financial administration and obligations, whether that is filing a tax return or saving into a personal pension. Missing the deadline is often a symptom of a wider pressure that the system does not adequately account for.”
For many, completing a tax return could unlock unexpected pension benefits. If you have changed jobs, started self-employment or entered a higher tax bracket, filing ensures you do not leave valuable tax relief unclaimed.
An HMRC spokesperson said: “We’re focused on helping customers understand what they need to do and where to get support. Every year we run a national campaign to support self-assessment customers to file on time, while providing clear guidance on gov.uk and extra help from our expert advisers for those who need it. As a result, 11.5 million customers filed their 2024-25 tax return on time.”
