HMRC warning as millions risk £100 fine by missing major tax deadline today

This year's deadline is for the 2023-24 taxation year, and HMRC warns that if you miss it, you could look an archetypal precocious filing punishment of £100

The deadline for filing your self-assessment taxation deadline is time and hazard a fine from HMRC if you miss it.

This year's deadline is for the 2023-24 tax year, and HMRC warns that if you neglect to taxable connected time, you could look an archetypal precocious filing punishment of £100. This applies adjacent if determination is nary taxation to wage oregon if the taxation owed is paid connected time. After 3 months, further regular penalties of £10 per time are added, up to a maximum of £900.

After six months, a further punishment of 5% of the taxation owed oregon £300 is past added - whichever is greater. After 12 months, different 5% oregon £300 complaint is added. There are besides further penalties for paying precocious of 5% of the taxation unpaid astatine 30 days, six months and 12 months. If the taxation remains unpaid aft the deadline, involvement of 7.25% is besides beryllium charged connected the magnitude owed, successful summation to the penalties.

Most UK taxpayers person their taxes deducted automatically from their wages, pensions oregon savings, and won't request to record a taxation return. But taxation returns are owed from individuals oregon businesses that haven't had taxation automatically deducted, oregon that person earned other untaxed income.

According to probe from Handelsbanken Wealth & Asset Management, much than 300,000 radical could miss the January taxation deadline. This probe comes alongside information from HMRC, which revealed that, arsenic of January 23, astir 5.4 cardinal radical had yet to record their returns for the 2023-24 taxation year.

The probe revealed that worries and concerns astir self-assessment are connected the emergence among the self-employed with 17% saying they were disquieted astir the fiscal consequences of making a mistake erstwhile filing. This is compared to 11% successful the aforesaid survey conducted past January.

A further 16% expressed concerns astir the fiscal repercussions of missing the deadline - lone 11% said the aforesaid past year.

Around 11% accidental completing self-assessment returns is challenging due to the fact that of their deficiency of fiscal knowledge, and 12% accidental it is pugnacious owed to the complexity of calculating their income. A further 9% stated that they find self-assessment forms challenging owed to their mediocre record-keeping passim the year.

Mark Collins, Head of Tax astatine Handelsbanken Wealth & Asset Management said: “Self-assessment returns stay challenging for important numbers of the self-employed, with galore astatine hazard of missing the January 31st deadline and others lacking assurance erstwhile completing forms. Customers filing their returns precocious hazard a £100 fine, adjacent if determination is nary taxation to pay. Penalties tin equine up if returns are much than 3 months late, with further penalties for paying outstanding taxation late.”

Do I request to taxable a self-assessment taxation return?

You usually request to record a self-assessment taxation instrumentality if you're self-employed and your income hasn't had taxation automatically deducted, oregon if you've earned other currency extracurricular of your mean employment that has not been taxed.

• Your self-employment income was much than £1,000 (before taking disconnected thing you tin assertion taxation alleviation on)
• Your income from renting retired spot was much than £2,500 (you’ll request to interaction HMRC if it was betwixt £1,000 and £2,500)
• You earned much than £2,500 successful untaxed income, for illustration from tips oregon commission
• Your income from savings oregon investments was £10,000 oregon much earlier tax
• You request to wage Capital Gains Tax connected profits from selling things similar shares oregon a 2nd home
• You’re a manager of a institution (unless it was a non-profit organisation, specified arsenic a charity)
• You, oregon your partner’s, income was implicit £50,000 and you’re claiming Child Benefit
• You person income from overseas that you request to wage taxation on, oregon you unrecorded overseas but person an income successful the UK
• Your taxable income was implicit £100,000
• If you gain implicit £50,000 successful the 2021/22 taxation twelvemonth and marque pension contributions you mightiness person to implicit an appraisal to assertion backmost the other taxation alleviation you’re owed
• You’re a trustee of a spot oregon registered pension scheme
• Your State Pension was your lone root of income and was much than your idiosyncratic allowance
• You received a P800 from HMRC saying you didn’t wage capable taxation past year

You tin besides cheque online done the HMRC website to spot if you request to nonstop a taxation return.