HM Revenue and Customs (HMRC) has issued an urgent warning to millions of taxpayers across the UK, as the critical deadline for Self Assessment submissions rapidly approaches. The tax authority revealed that almost 5.65 million people have yet to complete their annual tax return for the 2024/25 financial year.
The Impending Penalty for Late Filing
Individuals who fail to submit their return by 11:59 pm on 31 January 2026 will face an automatic initial penalty of £100. This fixed charge applies even if the taxpayer owes no money or pays their bill on time. Myrtle Lloyd, HMRC’s Chief Customer Officer, encouraged people to act now, stating: "The New Year is an ideal opportunity for a fresh start. Ensuring your tax affairs are in order is a perfect way to begin. If you haven't started your return, the clock is ticking—visit GOV.UK today."
Flexible Online Support and Payment Options
A comprehensive suite of online guidance and tools is accessible via the GOV.UK website to assist with completing and filing a return. The system is designed for convenience, allowing users to start their return, save their progress, and revisit it as many times as needed before final submission. Crucially, the payment for any tax owed does not have to be made immediately upon filing but must be settled in full by the 31 January deadline.
The simplest method for payment is through the official HMRC app, where customers can also set up notifications to receive alerts about upcoming payment dates, helping them avoid missed deadlines. For those who foresee difficulty in meeting the filing date, HMRC advises contacting them before 31 January, as they will consider reasonable excuses fairly.
Escalating Penalties and Security Warning
The consequences for missing the deadline become progressively more severe:
- An immediate £100 fixed 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.
Separate penalties also exist for late payment of tax, set at 5% of the outstanding amount at 30 days, 6 months, and 12 months. On top of all penalties, interest will be charged on any unpaid tax after the deadline.
HMRC also took the opportunity to warn Self Assessment customers about an increased risk of being targeted by fraudsters. Taxpayers are strongly advised to never share their HMRC login details with anyone, including a tax agent. Official advice on recognising scams is available on GOV.UK.
