Those required to complete a return must also pay any tax bill.
“Filing the return is only half the battle – you must also pay any tax owed for the 2024-25 tax year by January 31 which will require sufficient cleared funds available in your bank account ahead of the deadline,” said Alice Haine, personal finance analyst at Bestinvest.
Those who are unable to pay in full by January 31 may be able to set up a “time to pay” arrangement online if they owe less than £30,000 and meet the criteria.
Anyone missing the filing deadline faces the following penalties:
-
An initial £100 fixed penalty, even if there is no tax to pay, or if the tax due is paid on time
-
After three months, there could also be additional daily penalties of £10 per day, up to a maximum of £900
-
After six months, there could be a further penalty of 5% of the tax due or £300, whichever is greater. After 12 months, there could be another 5% or £300 charge, whichever is greater
-
There are also additional penalties for late payments of 5% of the tax unpaid at 30 days, six months and 12 months
-
If tax remains unpaid after the deadline, interest may also be charged on the amount owed
HMRC will consider customers’ reasons for missing the deadline. Those with a reasonable excuse, external may avoid a penalty.
People should also watch out for scams, with criminals attempting to dupe taxpayers by purporting to be from HMRC. Fraudsters may threaten people, claiming they have an unpaid tax bill, or they may make offers of fake rebates.
