Millions of households across the UK are being urged to act swiftly to avoid a series of escalating fines from HM Revenue and Customs (HMRC). The tax authority has confirmed it will begin issuing initial £100 penalties in January for those who miss the crucial Self Assessment deadline.
The Critical Deadline and Immediate Penalty
The final date to submit a tax return for the 2022 to 2023 tax year and settle any outstanding tax is 31 January 2024. HMRC has stressed that anyone failing to file their return by this date will automatically receive a £100 fixed penalty, regardless of whether they owe any tax or not.
Myrtle Lloyd, HMRC’s Chief Customer Officer, encouraged people not to delay. "Millions of customers have already completed their tax returns and can start 2026 with one less thing to worry about," she said. "For anyone yet to file, don’t leave it until the last minute. Filing now means you know exactly what you owe and have time to arrange payment."
How Penalties Escalate to £900 and Beyond
The initial £100 charge is just the beginning of a steep penalty structure for late filers. HMRC has outlined the following escalating fines:
- After 3 months: Additional daily penalties of £10 per day, which can accumulate up to a maximum of £900.
- After 6 months: A further penalty of 5% of the tax due or £300, whichever amount is greater.
- After 12 months: Another 5% or £300 charge, again whichever is greater.
Separately, for any tax that remains unpaid, penalties of 5% of the outstanding amount will be applied at 30 days, 6 months, and 12 months after the payment deadline.
Key Information and Exemptions for Taxpayers
HMRC has provided some important clarifications for those completing their returns. Notably, customers do not need to include their 2025 Winter Fuel Payment, or the Pension Age Winter Heating payment in Scotland, on their tax return for the 2024 to 2025 tax year. These payments, received in Autumn 2025, will instead be accounted for in the 2025 to 2026 tax return, which is due by 31 January 2027.
For those who believe they no longer need to complete a Self Assessment, there is a process to de-register. Eligible customers can contact HMRC to request removal from the system before the filing deadline for a given tax year. If a return has already been sent, individuals can choose to de-register for the following tax year, after which HMRC will adjust their tax code.
The clear message from HMRC is to take action immediately. Taxpayers are advised to search for 'Self Assessment' on GOV.UK to begin the process, understand their liability, and avoid starting the new year with a costly and avoidable fine.
