One Million Tax Returns Overdue: HMRC Warns of Penalties
An estimated one million people missed the deadline to file their tax returns, according to HM Revenue and Customs (HMRC). This means they now face penalties, which can be avoided if they act quickly.
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. Despite extending helplines and webchat services, the busiest hour for online self-assessment filings was from 5 PM GMT on Saturday.
On the final day, 475,722 people filed out of a total of about 11.5 million submissions. Those who missed the deadline face an automatic £100 penalty. HMRC's Chief Customer Officer, Myrtle Lloyd, urged taxpayers to file their returns as soon as possible to avoid penalties and late payment interest.
While many people have tax automatically deducted from their wages through PAYE (pay-as-you-earn), others with multiple sources of income need to file annually through self-assessment. This includes those earning over £1,000 in the 2024-25 financial year from self-employment or property rentals.
Some individuals who were not required to file this time include those earning over £150,000, whose high income was the only reason they needed to file previously, or those who switched to paying the high income child benefit charge through PAYE.
HMRC will consider the reasons for missing the deadline. Those with a reasonable excuse may avoid a penalty. However, those who missed the deadline face a series of penalties, including an initial £100 fixed penalty, daily penalties of £10 per day up to £900, and further penalties of 5% of the tax due or £300 after six and 12 months.
If tax remains unpaid after the deadline, interest may also be charged on the amount owed.
