One Million Tax Returns Overdue: HMRC Issues Warning
An estimated one million people missed the deadline to file their tax returns, facing penalties and late payment interest, according to HM Revenue and Customs (HMRC). The tax authority reported that 27,456 people filed in the final hour before the cut-off for 2024-25 returns at midnight on Saturday.
The busiest hour for online self-assessment filings was from 5 PM GMT on Saturday, with 475,722 people submitting their returns on the final day. HMRC extended its helplines and webchat services over the weekend to accommodate the surge in filings.
Taxes are automatically deducted from wages through PAYE (pay-as-you-earn), but those with multiple sources of income may need to file annually through self-assessment. This includes individuals earning over £1,000 in the 2024-25 financial year from self-employment, property rentals, or other sources.
Some individuals who were not required to file this year include those earning over £150,000, whose high income was the sole reason for previous filings, or those who switched to paying the high-income child benefit charge through PAYE.
HMRC reminds taxpayers that missing the deadline can result in penalties. These penalties include:
- An initial £100 fixed penalty, even if no tax is due or if tax is paid on time.
- Additional daily penalties of £10 per day, up to a maximum of £900, after three months.
- A further penalty of 5% of the tax due or £300, whichever is greater, after six months.
- Another 5% or £300 charge, whichever is greater, after 12 months.
- Late payment penalties of 5% of the unpaid tax at 30 days, six months, and 12 months.
- Interest on the amount owed if tax remains unpaid after the deadline.
HMRC will consider reasonable excuses for missing the deadline, allowing those with valid reasons to avoid penalties. For more information, visit the HMRC website.
