Money-saving expert Martin Lewis has issued an urgent plea to millions of taxpayers across the UK, warning them to submit their Self Assessment tax returns immediately or face severe financial penalties.
The Fast-Approaching Deadline and Immediate Penalty
The critical cut-off for online submissions for the 2024/2025 tax year is 11:59pm on January 31, 2026. Harsh rules from HM Revenue and Customs (HMRC) mean that missing this deadline triggers an instant £100 fine. This penalty applies automatically, even if the individual does not actually owe any tax for that period.
Official HMRC data indicates a staggering five million people have still not filed their returns, with only weeks remaining before the deadline passes. Martin Lewis, founder of MoneySavingExpert.com, highlighted that this last-minute seasonal rush often overwhelms systems, leading to "clogged phone lines" and accountants being too busy to offer timely help.
Escalating Costs for Late Filing and Payment
The initial £100 penalty is just the beginning. If the return remains outstanding for more than three months, daily charges of £10 per day start to accumulate, up to a maximum of £900. Further punitive fines of £300 or 5% of the tax owed (whichever is higher) are then applied at six and twelve months.
Separately, interest accrues on any unpaid tax. The current rate is set at 7.75% per annum, a significant cost for those who delay settling their bill. Mr Lewis offered crucial advice for those struggling to complete their forms in time: "Even if you can’t do the form in time, have a rough guess of what you owe and pay that. This can help reduce any interest you need to pay for late payment of your tax."
Who Needs to File and Why Acting Early is Crucial
You are legally required to complete a Self Assessment return if you fall into certain categories. These include:
- Being self-employed with profits over £1,000.
- Receiving Child Benefit while being liable for the High Income Child Benefit Charge.
- Having been specifically asked to file by HMRC, even if your circumstances have recently changed.
Filing well before the January 31st rush provides multiple benefits. It allows ample time to gather necessary paperwork, ensures calculations are accurate, and avoids the stress of potential technical glitches or payment processing delays in the final 24 hours. Taking action now is the most effective way to prevent unnecessary fines and protect your finances.
