An estimated 1.1 million people in the UK missed the 31 January cut-off for submitting their annual self-assessment tax returns, according to HM Revenue and Customs (HMRC).
Each late filer now faces a penalty of at least £100, unless they can prove they had a valid reason for their delay.
HMRC revealed that more than 11.5 million taxpayers did manage to complete the process on time, with a flurry of last-minute activity on deadline day. Over 31,000 filed in the final hour before midnight. Self-assessment typically applies to those who are self-employed or have multiple sources of income, ensuring both their tax returns and any associated payments are processed.
While the official deadline for paying any owed tax was also 31 January, HMRC does not impose late payment penalties until 1 March. However, customers of Barclays were left scrambling at the last minute due to the bank’s IT problems, which delayed some tax payments on Friday. Barclays has since assured customers that no one will be left out of pocket as a result of its technical issues.
Penalties for missing the deadline
Those who did not file on time should submit their return promptly to avoid escalating fines. The penalty regime includes:
• An initial £100 penalty, even if no tax is due
• Additional daily penalties of £10 after three months, up to £900
• A further penalty of 5% of the tax due (or £300, whichever is greater) after six months
• Another 5% of the tax due (or £300) after 12 months
Late taxpayers also face further charges if they fail to settle any outstanding amounts, with penalties of 5% of the unpaid tax levied at 30 days, six months and 12 months, as well as interest on late payments.
Myrtle Lloyd, HMRC’s Director General for Customer Services, thanked those who managed to meet the deadline and urged late filers to submit returns swiftly to minimise the impact of penalties.
Anyone planning to challenge a fine must complete their return first, before submitting an appeal in writing or via a designated HMRC form. However, the tax authority has faced criticism from MPs over its customer service telephone lines—claims that HMRC chief executive Jim Harra vehemently denies, describing allegations of a “deliberately poor” phone service as “completely baseless”.
Online platforms such as eBay and Vinted are now obliged to disclose sales data for individuals who have sold 30 items or more, or earned at least £1,700. The change does not introduce any new taxes on these transactions; instead, it simply shares information to help HMRC cross-check individuals’ returns and ensure correct tax compliance.
With the self-assessment window now closed, HMRC’s message is clear: if you missed the deadline, file as soon as possible. Not only could you reduce the mounting penalties, but you can also start any formal appeal process should you believe you have grounds to contest the fine.
