Over 1m people failed to file tax returns on time - escalating fines revealed

More than 11.5 cardinal taxpayers filed their self-assessment taxation returns connected time, but an estimated 1.1 cardinal radical missed Friday's deadline, HMRC said

HM Revenue & Customs (HMRC) has announced that much than 11.5 cardinal taxpayers managed to record their self-assessment taxation returns by the deadline, but astir 1.1 cardinal radical failed to conscionable Friday’s cut-off.

According to HMRC, a full of 11,509,810 taxation returns made it successful earlier midnight connected January 31, leaving those who missed retired present taxable to a £100 penalty. In a flurry of last-minute submissions, immoderate 31,442 returns were sent successful betwixt 11pm and 11:59pm, with 732,498 being recorded connected deadline time alone.

HMRC is powerfully advising those who are precocious to taxable their instrumentality instantly and settee immoderate taxation due. The bureau mentioned that 1 of the fastest methods for outgo is via its app, and individuals struggling to wage whitethorn beryllium capable to put "time to pay" solutions. Myrtle Lloyd, HMRC’s director-general for lawsuit services, urged: "I’m urging anyone who missed the deadline to taxable their instrumentality arsenic soon arsenic imaginable to debar immoderate further penalties."

Those facing penalties aft the deadline tin expect an archetypal £100 fixed charge, which is enforced careless of whether immoderate taxation is owed oregon if the taxation owed was paid promptly. Beyond this, a bid of escalating charges see further regular fines of £10 aft 3 months, up to a full of £900, followed by a punishment of either 5% of the taxation owed oregon £300 – whichever magnitude is greater – astatine some the six- and twelve-month marks.

Taxpayers who miss the deadline look further penalties – a 5% complaint connected unpaid taxation astatine 30 days, six months, and 12 months, with involvement besides being charged connected immoderate precocious payments, according to HMRC. This twelvemonth saw a alteration successful the fig of returns submitted earlier the deadline compared to past year, with 11,581,962 returns received for the 2022-2023 taxation twelvemonth by January 31, 2024.

Charlene Young, a pensions and savings adept astatine AJ Bell, commented: "HMRC estimates that 1.1 cardinal radical failed to record by the deadline risking £100 precocious filing penalties, a imaginable windfall for the taxman of £110m."

She further noted: "After Barclays suffered a systems-wide outage connected Friday January 31, immoderate taxpayers who held connected to their currency until the past infinitesimal oregon were waiting for payday could person recovered they were incapable to nonstop money. HMRC is said to beryllium moving with Barclays and reassured those genuinely affected volition beryllium capable to entreaty immoderate precocious outgo fines done the accustomed channels."