HM Revenue and Customs is set to impose financial penalties on approximately two million individuals across the United Kingdom, following a significant shortfall in self-assessment tax return submissions. With the critical deadline fast approaching, official figures reveal that only 10 million of the anticipated 12 million taxpayers have completed their filings as of Friday, January 30.
Imminent Deadline and Penalty Structure
The final opportunity for submitting self-assessment returns for the 2024-25 tax year expires at midnight on Saturday, January 31. Those who fail to meet this deadline will face immediate consequences, starting with a fixed £100 penalty for late submission.
Beyond this initial charge, HMRC implements escalating penalties for continued non-compliance. After three months, daily penalties of £10 per day come into effect, accumulating to a maximum of £900. This structured approach aims to encourage timely filing while penalising persistent delays.
Expert Warnings and Communication Challenges
Tax professionals have expressed concerns about the difficulties taxpayers face when attempting to contact HMRC for assistance. John Hood, a former HMRC tax inspector now with accountancy firm Moore Kingston Smith, highlighted the growing challenges in reaching tax office staff.
"HMRC acknowledges that millions of calls each year go unanswered," Hood explained. "With the late announcement about helplines operating on Saturday – deadline day – there may only be volunteer skeleton staff available. If you want to speak to HMRC before tea time, put your call in before you have had your breakfast."
Payment Deadlines and Interest Charges
Charlene Young, Senior Pensions and Savings Expert at AJ Bell, emphasised the importance of settling any owed amounts by the January 31 deadline. "Whenever you filed (or plan to), make sure you’ve paid what you owe by midnight on 31 January 2026," she advised.
Young further warned about the financial consequences of late payment: "If you don’t, you’ll start to accrue daily interest from 1 February. The annual interest rate charged by HMRC will sit at a whopping 7.75% from 9 January 2026, with further surcharges if the bill remains unpaid months later."
Support Options for Taxpayers
For those struggling with payment obligations, HMRC does provide some flexibility. Taxpayers who owe £30,000 or less can potentially arrange an online payment plan with the revenue service. This option allows for structured repayment over time, easing immediate financial pressure.
Additionally, individuals anticipating significantly reduced earnings in the coming year can apply to reduce their payments on account. This proactive measure helps align tax payments with actual income levels, preventing overpayment and improving cash flow management.
The current situation underscores the importance of meeting tax obligations promptly while highlighting the support mechanisms available to those facing genuine difficulties. With millions still needing to file and pay, the final hours before the deadline remain crucial for avoiding unnecessary penalties and interest charges.
