The UK's tax authority, HM Revenue and Customs (HMRC), has issued a public apology following a significant technical failure that left millions of taxpayers stranded just weeks before a crucial deadline. The helpline outage, which occurred on Thursday, has raised fears that up to five million households could be hit with an automatic £100 fine if they miss the looming self-assessment cut-off.
Chaos at a Critical Time
The system collapse could not have come at a worse time for UK taxpayers. The crucial deadline for submitting self-assessment tax returns is January 31, 2026. According to HMRC's own figures released on January 5, while over 6.36 million people had already filed, a staggering 5.65 million individuals still needed to complete their returns. The helpline, a vital source of support for many, was closed from approximately 11.40am until 2.15pm due to what was described as a "short-lived technical issue."
An HMRC spokesperson stated: “We’ve now reopened our helplines – including for self-assessment. We thank people for their patience and are sorry for the inconvenience.” The timing has drawn sharp criticism from consumer advocates. Jenny Ross, Money Editor at Which?, said: “With the self-assessment tax deadline rapidly approaching, it’s hugely concerning to see that HMRC’s phone lines have gone down. This will be hugely frustrating to those needing help with their tax returns, and particularly disruptive to those unable to use digital services.”
The Looming Penalty Threat
The immediate consequence of missing the January 31 deadline is an automatic initial penalty of £100. This fixed fine applies even if the taxpayer owes no money or has already paid their bill. Further daily and percentage-based penalties can accumulate if the return remains outstanding for extended periods.
Myrtle Lloyd, HMRC’s Chief Customer Officer, urged prompt action: “What better way than to ensure your tax affairs are in order for another year than completing your tax return. If you have yet to start, the clock is ticking, go to gov.uk and start today.” The revenue body has clarified that taxpayers can start their return online, save their progress, and revisit it as many times as needed before final submission. It is important to note that while the return must be filed by January 31, any tax owed does not necessarily have to be paid at the same moment, but must be settled by the deadline to avoid interest charges.
Steps to Take Now
For those yet to file, HMRC advises using its online services and official app. Taxpayers can set up payment notifications within the app to ensure they do not miss any deadlines. Crucially, the authority has stressed that individuals who believe they will be unable to meet the January 31 cut-off should contact HMRC before the deadline expires to explain their situation. HMRC has stated it will "treat those with reasonable excuses fairly."
The incident highlights the pressure on the UK's digital tax system during peak periods and serves as a stark reminder to the millions yet to file. With the deadline now just days away, avoiding the £100 penalty requires immediate action, either through HMRC's digital portal or, now that services have resumed, its helplines.
