HM Revenue and Customs has issued an urgent warning to approximately 3.3 million taxpayers across the United Kingdom, urging them not to delay submitting their self-assessment tax returns ahead of this week's critical deadline.
Immediate Penalties for Late Filing
Taxpayers who fail to file their online self-assessment returns for the 2024/25 tax year before 11:59pm on January 31 will face an immediate £100 penalty. This initial charge represents just the beginning of potential financial consequences for those who miss the deadline.
Escalating Financial Consequences
The penalties become progressively more severe for continued non-compliance. After three months of missed payment, the penalty increases by £10 per day, potentially reaching a maximum of £900. The financial burden doesn't end there, as further substantial penalties await those who delay even longer.
Six months after the initial deadline, taxpayers face an additional penalty of 5% of the outstanding tax or £300, whichever amount is greater. If twelve months pass without payment, yet another 5% or £300 charge will be applied, creating a significant financial burden for those who repeatedly ignore their tax obligations.
Who Needs to Submit a Return?
The self-assessment system applies to several categories of taxpayers, including:
- Sole traders who earned more than £1,000 between April 6, 2024 and April 5, 2025
- Individuals who were part of a business partnership during that period
- Those who paid Capital Gains Tax after selling or disposing of assets that increased in value
HMRC's Official Advice
Myrtle Lloyd, HMRC's chief customer officer, emphasised the importance of early action: "Don't leave it until deadline day. Filing now will give you peace of mind that your tax return is completed and if you have tax to pay, you have a week to arrange payment."
For those concerned about meeting their tax bill, HMRC offers potential solutions. Taxpayers experiencing financial difficulties can explore setting up a payment plan online by searching 'difficulties paying HMRC' on the official GOV.UK website.
Current Filing Statistics
As of January 23, approximately 8.6 million people had already submitted their tax returns for the 2024 to 2025 tax year. This figure compares to 11.5 million who had filed ahead of the deadline at the same time last year, suggesting a significant number of taxpayers may be running behind schedule.
Learning from Previous Years
The urgency of HMRC's warning is underscored by last year's statistics, where over one million people failed to file their tax returns on time, resulting in substantial penalties for those affected. This historical precedent highlights the importance of prompt action to avoid similar financial consequences.
Reasonable Excuse Considerations
Official HMRC guidance acknowledges that some taxpayers may have legitimate reasons for missing the deadline. The revenue service states: "HMRC will consider customers' reasons for missing the deadline. Those with a reasonable excuse may avoid a penalty." However, taxpayers should not rely on this provision without proper documentation and communication with HMRC.
The combination of immediate penalties, escalating daily charges, and substantial long-term financial consequences makes timely filing essential for millions of UK taxpayers facing this week's deadline.
