HMRC to issue fines to UK households if they don’t do one thing from January 2025
HMRC has issued a warning to UK households about a looming £100 fine if they miss an important deadline. The government body has reminded the public that there is just over a month left for people to file and pay their self-assessment tax return by midnight on January 31, 2025. HMRC has made it clear that online tax returns for the 2023 to 2024 tax year must be paid by this date or penalties will apply.
A late filing fine of £100 will be imposed if your tax return is up to three months late, with the fee potentially increasing further if it’s later, or if you pay your tax bill late. Interest will also be charged on late payments. However, you can appeal against a penalty if you have a reasonable excuse that prevented you from meeting the deadline. This could include circumstances such as the death of a close relative, an unexpected hospital stay, serious illness, computer or software failure, service issues with HMRC online services, fire, flood or theft, postal delays, delays related to a disability or mental illness, misunderstanding of legal obligations, or reliance on someone else to send your return who failed to do so.
HMRC has issued a stern warning to taxpayers, stating that they must send their tax return or payment as soon as possible after any reasonable excuse is resolved. The tax authority clarified that excuses such as a bounced cheque or a failed payment will not be accepted for missing the deadline, nor can taxpayers claim they submitted late because HMRC didn’t send a reminder.
According to HMRC, you are required to submit a tax return if, in the last tax year from April 6, 2023, to April 5, 2024, you were self-employed as a ‘sole trader’ and earned more than £1,000 (before deducting anything you can claim tax relief on), were a partner in a business partnership, had a total taxable income of more than £150,000, had to pay Capital Gains Tax when you sold or ‘disposed of’ something that increased in value, or had to pay the High Income Child Benefit Charge.
Additionally, you may also need to send a tax return if you have any untaxed income from sources such as property rental, income from savings, investments and dividends, tips and commission, or foreign income. HMRC further added that anyone unable to pay their tax bill in full by the January deadline can spread the cost using its online ‘Time to Pay’ system. Those who owe less than £30,000 and are eligible can apply online without having to contact HMRC directly, while those that owe more than £30,000 can still apply but need to contact HMRC.
Before establishing a Time to Pay arrangement, taxpayers must submit their self-assessment tax return. Myrtle Lloyd, HMRC’s director general for Customer Services, has offered reassurance: “We’re here to help customers get their tax right, and if you are worried about how to pay your Self Assessment bill, help and support are available.” Customers can set up their online payment plan to suit their financial circumstances and can spread those payments across a maximum of 12 months, providing extra flexibility in meeting their tax obligations.