Anyone who fails to meet the deadline repeatedly could rack up a significant bill, HMRC has warned.
HMRC has issued a warning over the fines (Image: Getty)
HMRC has issued a warning to anyone who fails to pay their tax before January 31, along with a full list of the eye-watering fines which will be owed by taxpayers which could add up to £1,600 or more across a year. The tax office is rounding up the last stragglers in the coming weeks who should have submitted a self-assessment tax return and should have paid their resultant tax bill, but have as yet failed to do so.
HMRC expects more than 12 million tax returns to be filed by the deadline at midnight on the final night of January, but those who miss the deadline will have to pay at least £100, even if they don’t owe any tax to pay. Then, the fines rise to £10 per day after three months, up to a maximum of £900. And after 6 months, another £300 fine is issued, or 5% of the tax due, then after a year it’s another 5% or £300, ‘whichever is greater’, HMRC warned.
It said: “Those who miss the deadline will be issued with a penalty:
- an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
- after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
- after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
- after 12 months, another 5% or £300 charge, whichever is greater
- “There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months. If tax remains unpaid after the deadline, interest will also be charged on the amount owed, in addition to the penalties above.”
It means that those who fail to pay could end up racking up as much as £1,600 in fines, plus interest on top of the unpaid tax when all these fines – £100, £900, £300 and £300 are added together – and maybe more, if the 5% of the owed tax is larger than £300 at each key milestone.
Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “The Self Assessment deadline is less than one month away, and thousands of people have already paid their tax bill via the HMRC app. It is quick and easy to do, and you can also see your payment history. Search ‘download the HMRC app’ on GOV.UK to access the app and make your Self Assessment payment.”
