3.8 million Self Assessment returns still to be filed a week before deadline

With just one week to go before the 31st January Self Assessment deadline, HMRC estimates that 3.8 million are risking a £100 penalty if they do not file their tax return in time.

HMRC is anticipating more than 12.1 million Self Assessment tax returns to be filed for the 2022-23 tax year, along with any payment due. To date, more than 8.3 million online returns have already been received.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

“If you are a Self Assessment taxpayer, now is the time to take action and get your return done. People can familiarise themselves with the process by checking out HMRC’s online resources on GOV.UK. Once a tax return is submitted, it’s easy to find out what’s owed and to pay online or using the HMRC app. Just search ‘pay my Self Assessment’ on GOV.UK to find out more.”

The penalties for late tax returns are:

• an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
• 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

There are also additional penalties for paying outstanding tax late. These are 5% of that unpaid at 30 days, 6 months and 12 months. Interest will also be charged on any tax paid late.

HMRC will consider a customer’s reasons for not being able to meet the deadline. Those who provide a reasonable excuse may avoid a penalty.

For anyone unable to pay in full, it may be possible to set up a Time to Pay arrangement with HMRC online if less than £30,000 is owed.