HMRC Issues Urgent Warning to 3.4 Million Taxpayers as Deadline Looms
With just one week remaining until the Self Assessment deadline, HM Revenue and Customs (HMRC) has issued a stern warning to 3.4 million individuals who have yet to submit their 2023 to 2024 tax returns. Failure to act now may result in missing the January 31 deadline, leading to a £100 penalty. While a significant portion of taxpayers, over 8.6 million, have already filed their returns, a substantial number are at risk of incurring penalties if they do not take action promptly.
Myrtle Lloyd, HMRC’s Director General for Customer Services, emphasised the importance of acting swiftly, stating, “Time is running out for the millions still to file their Self Assessment tax return by 31 January.” Lloyd highlighted that support and guidance are readily available for those who have not yet commenced the filing process. Taxpayers can seek assistance by visiting GOV.UK and searching for ‘Self Assessment’ to access the necessary resources.
To facilitate timely payments, HMRC has published a comprehensive list of payment options on GOV.UK, including payment plans. Taxpayers are urged to ensure that their bank details are provided as part of their tax return to expedite any potential repayments securely. Furthermore, HMRC will assess customers’ reasons for non-payment on a case-by-case basis. While individuals with a valid excuse may avoid penalties, those without a reasonable justification may face financial consequences.
Penalties for late submissions or non-payment include an initial fixed penalty of £100, regardless of the tax amount owed, or if the tax is paid on time. Additional daily penalties of £10 can be incurred after 3 months, up to a maximum of £900, while after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater, may be imposed. Similarly, after 12 months, another 5% or £300 charge, whichever is higher, can be levied.
In cases of delayed payments, penalties of 5% of the outstanding tax at 30 days, 6 months, and 12 months may apply, in addition to accrued interest. Taxpayers are also advised to remain vigilant against potential scams and refrain from sharing their HMRC login details, even with tax agents. Comprehensive guidance on recognising and reporting HMRC-related scams is accessible on GOV.UK to safeguard individuals against fraudulent activities.
The looming deadline serves as a critical reminder for taxpayers to fulfil their obligations promptly and avoid incurring penalties and interest. By taking proactive steps to submit their tax returns and settle any outstanding payments, individuals can ensure compliance with HMRC regulations and prevent financial repercussions. As the deadline approaches, taxpayers are encouraged to promptly complete their Self Assessment tax returns to avoid facing penalties and safeguard their financial standing.