The deadline for submitting your self-assessment tax return is approaching fast – missing it will result in an immediate £100 penalty from HMRC. The cutoff time to file your tax return for the 2024/25 tax year is midnight on January 31. HMRC has issued a warning that as of January 23, 3.3 million individuals still need to file their returns.
Various circumstances necessitate filing a self-assessment tax return, such as being self-employed or earning additional income beyond your primary job. Additionally, if you receive income from property rentals or if you are a high earner claiming Child Benefit, you are obligated to complete a self-assessment.
Failing to submit your self-assessment by the deadline will incur a £100 fine from HMRC, regardless of whether you owe taxes. The penalty escalates to £10 per day, up to a maximum of £900, if the return remains outstanding after three months. Subsequently, after six months, a charge of 5% of the tax owed or £300 (whichever is higher) applies, with a repeat at 12 months.
It is crucial to pay any outstanding tax by January 31 to avoid incurring interest on late payments. For individuals struggling to settle their tax bill and owing less than £30,000, HMRC offers the option to arrange a payment plan called “Time to Pay.” To qualify, one must not have existing payment plans or debts with HMRC, have up-to-date tax returns, and request assistance within 60 days of the payment deadline.
Registration for self-assessment should have been completed by October 5 of the previous year. MoneyHelper.org.uk outlines situations where filing a self-assessment tax return may be necessary. Individuals can also verify their obligation to submit a tax return by checking the HMRC website online.
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