The deadline for submitting your self-assessment tax return is approaching, and missing it will result in an immediate £100 penalty from HMRC. The cutoff for filing your tax return for the 2024/25 tax year is midnight on January 31. HMRC’s recent update indicated that 3.3 million individuals still need to complete their filings as of January 23.
There are various reasons why you may need to file a self-assessment tax return. If you are self-employed, received additional income beyond your primary job, earn rental income, or are a high earner claiming Child Benefit, you are required to submit a self-assessment.
Failing to submit your self-assessment by the deadline will lead to a £100 fine from HMRC, regardless of whether you owe any taxes. The penalty escalates to £10 per day, up to a maximum of £900 after three months. Subsequently, after six months, there is a charge of 5% of the tax owed or £300, whichever is higher, and this cycle repeats after 12 months.
In addition to filing on time, you must pay any taxes owed by January 31 to avoid accruing interest on late payments. If you are having difficulty paying 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.
It is essential to have registered for self-assessment by October 5 of the previous year. MoneyHelper.org.uk outlines criteria for individuals who might need to file a self-assessment tax return. You can also verify if you need to submit a tax return by checking the HMRC website.
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