The deadline for submitting your self-assessment tax return is fast approaching. Failure to meet this deadline will result in an immediate £100 fine from HMRC.
To avoid penalties, make sure to file your tax return for the 2024/25 tax year by midnight on January 31. HMRC has indicated that as of January 23, 3.3 million individuals still need to complete their filings.
There are several reasons why you may be required to file a self-assessment tax return. For instance, if you are self-employed, have earned additional income apart from your primary job, receive rental income, or are a high earner claiming Child Benefit, you must complete the process.
Submitting your self-assessment after the deadline will incur a £100 penalty from HMRC, even if you do not owe any taxes but are registered for self-assessment.
Penalties escalate for late filings, starting at £10 per day up to a maximum of £900 after three months. After six months, a charge of 5% of the tax owed or £300 (whichever is higher) applies, and this cycle continues every 12 months.
Additionally, payment of any outstanding tax is due by January 31 to avoid accruing interest on late payments. Failure to pay results in a 5% penalty on the unpaid tax after 30 days, with additional penalties at six months and 12 months.
If you are struggling to settle your tax bill and owe less than £30,000, you may qualify for a Time to Pay arrangement with HMRC. However, you 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.
Ensure you registered for self-assessment by October 5 in the previous year to comply with HMRC requirements.
MoneyHelper.org.uk suggests that you may need to file a self-assessment tax return based on specific criteria. You can verify your filing obligations by using the HMRC website’s online tool.
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