HM Revenue and Customs has warned workers of the January 31 Self Assessment deadline, with late filing penalties starting at £100 and potentially reaching £300 or more over time
HMRC has issued the warning (Image: Getty Images)
As the New Year kicks off, many UK workers could be at risk of incurring a fine of £300 or more. HM Revenue and Customs (HMRC) may start issuing these fines before employees have even had a chance to fully embrace the New Year.
The government body has previously cautioned that anyone required to complete a Self Assessment must pay their due tax by no later than 11.59pm on 31 January 2026. This deadline strictly pertains to individuals who need to submit an online tax return, as opposed to a paper one which should have been filed by 31 October last year.
If you haven’t already submitted your paper returns when required, you will already be subject to late filing penalties. Remember, you must send a Self Assessment tax return if you were categorised as a self-employed ‘sole trader’ who earned over £1,000 in the previous tax year, had to pay Capital Gains Tax when selling or disposing of something that appreciated in value, or were a partner in a business partnership.
You might also need to send a return if you had to pay the High Income Child Benefit Charge and don’t pay it through PAYE or have an untaxed income, which can include foreign income, tips and commissions, and money from renting out a property. You can check if you need to send a tax return here.
Penalties for missing the self assessment deadline.
HMRC has the authority to levy financial penalties for any delayed tax returns. Beginning with a fixed £100 fine, this can rapidly escalate if neglected.
If your tax return is not submitted within three months of the deadline, you will be subject to additional penalties of £10 per day, up to a maximum of £900. After six months, this penalty rises to either five per cent of the tax due or £300, whichever is greater.
An additional charge of 5% or £300, again whichever is larger, will be added after a year. HMRC stresses that these penalties can be easily avoided by simply submitting your Self Assessment tax return punctually.
Moreover, those who fail to pay their tax on time will initially be charged 5% of the unpaid tax 30 days after the due date.
This penalty will then increase by an extra 5% if the payment is six months and 12 months late, respectively. HMRC also underscores that interest will be charged on any outstanding tax owed.
What happens if I receive a penalty?
If you are slapped with a penalty by HMRC for either a late tax return or a late payment, you might be able to dodge paying it if you challenge the decision. As per HMRC guidelines, one valid reason for disputing the penalty is if you have a ‘reasonable excuse’.
Typically, you have 30 days from the date the penalty is issued to contact HMRC and formally lodge an appeal. If a deadline was missed, you will need to provide a reason for the delay.
The process of lodging an appeal will differ greatly depending on the type of tax you pay and whether you are employed or self-employed. Full details can be found here.
