Millions of people across the UK could be hit with extra charges if they don’t take urgent action.
A key HMRC deadline has arrived, and the cost of missing it is about to rise sharply.
From tomorrow, those who have still not submitted their 2022/23 self-assessment tax return will face an additional penalty of £10 per day.
This charge will continue for up to 90 days, potentially adding £900 in fines on top of the £100 penalty already issued for late filing.
HMRC estimated 1.1 million customers missed the initial self-assessment deadline on January 31.
Claire Trott, Head of Advice at St. James’s Place, said: "With daily £100 penalties kicking in from tomorrow for those who still haven’t submitted their self-assessment tax return, the pressure is rising.
"Whilst completing a tax return is often a dreaded task, and one may choose to put off, getting it sorted now could save you from significant financial penalties down the line."
HMRC warning: Savers could be hit with tax bills GETTYTrott explained: "Further penalties of five per cent of the tax due or £300 (whichever is greater) will apply at both the six-month and 12-month mark for those who still haven’t filed.
"It’s important to note that anyone who is currently registered for self-assessment is required to submit a return, whether they owe tax or not, so if you’re in this position, it’s crucial you don’t ignore reminders or warnings from HMRC."
Filing now won’t remove any existing fines, but it will stop further charges from building. The quickest way to file is through HMRC’s online portal.
The penalties for filing a tax return late are:
- An initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
- After 3 months, additional daily penalties of £10 per day, up to a maximum of £900
- After 6 months, a further penalty of five per cent of the tax due or £300, whichever is greater
- After 12 months, another five per cent or £300 charge, whichever is greater
There are also additional penalties for paying late - five per cent of the tax unpaid at 30 days, 6 months and 12 months. Interest will also be charged on any tax paid late.
There are also additional penalties for paying late
GETTYTrott added that for those with complex finances, speaking to a financial adviser may be worth the cost.
She said: "While the process may seem daunting, there are plenty of tips and guidance available on the HMRC website, and if your finances are particularly complex, speaking to a financial adviser is always a good option for those who are able."
She also explained "the most important thing is not to rush the return process as this could cause you to leave out vital information that could result in paying more tax than necessary."
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There are three key areas that are commonly overlooked: Gift Aid, business mileage, and work-related clothing costs
GETTYTrott highlighted three key areas that are commonly overlooked: Gift Aid, business mileage, and work-related clothing costs.
She said: "If you’re a higher rate taxpayer, Gift Aid payments can reduce your tax bill – but you’ll need to specify them in your form or inform your accountant of anything that qualifies."
That includes subscriptions and memberships to organisations like the Scouts, National Trust or Wildlife Trust.
Business mileage and essential uniforms or protective gear may also qualify for tax relief, but only if records are kept. With penalties rising from tomorrow, claimants are urged to act now.
