HM Revenue and Customs (HMRC) has issued a stark warning to millions of UK households, urging them to know how much tax they need to pay ahead of the looming Self Assessment deadline to avoid an automatic £100 penalty.
The 100-Day Countdown Begins
With exactly 100 days remaining until the 31 January 2026 cut-off, the tax authority is encouraging people to act promptly. Myrtle Lloyd, HMRC's Director General for Customer Services, emphasised the urgency, stating: "With 100 days to the Self Assessment deadline, now is the time to get started. Completing your return now means you know how much tax you need to pay ahead of the deadline."
HMRC has revealed that a significant 3.5 million individuals have already successfully filed their returns for the 2024-2025 financial period. For those who haven't, starting the process early offers a major advantage: returns can be revisited and modified multiple times before final submission, allowing taxpayers to understand their financial obligations well in advance.
Key Changes Taxpayers Must Note
This year brings important updates that filers need to be aware of. Individuals who have sold assets like shares after 30 October 2024 must pay close attention to the changed rates of Capital Gains Tax. The system will not automatically calculate the correct amount due, meaning taxpayers may need to work out an adjustment using the official calculator on GOV.UK.
Furthermore, a new digital service for the High Income Child Benefit Charge (HICBC) is now operational. This means thousands of Child Benefit claimants who are only in Self Assessment to pay this charge can now opt out. Eligible customers can call HMRC to de-register and choose to pay the charge through their PAYE tax code instead, simplifying the process for future years.
Act Now to Avoid Penalties
The core message from HMRC is clear: procrastination is costly. Submitting and paying late triggers an immediate £100 fine, with further penalties accruing over time. By tackling your Self Assessment return now, you gain a clear picture of your tax liability and can budget accordingly, ensuring you meet the 31 January deadline without facing unnecessary financial penalties.
