Millions of people across Great Britain were due to file their Self-Assessment tax return by midnight on Tuesday, January 31, with fines imposed from February 1 for anyone who missed the deadline.
Anyone who missed the deadline will need to pay a fixed penalty fee of £100 if they file in the next three months - with the fine increasing if they still have not filed by the end of April. HM Revenue and Customs (HMRC) estimates that more than 12 million people needed to complete a return for the 2021/22 tax year, with more than three million still to file just three days before the deadline.
Mike Parkes, tax expert at tax software business GoSimpleTax, warned people who have missed the deadline to get their return in as quickly as possible, advising that HMRC will not accept “mistakes, forgetfulness or lack of funds” under its ‘genuine reason’ rules for not imposing the £100 fixed fine.
Mike explained: “HMRC won’t accept mistakes, forgetfulness or lack of funds as a reason not to have filed your tax return, so if you’ve missed the deadline you should aim to submit your return as quickly as possible to avoid a higher fine.
“However, there are exceptions for genuine reasons for missing the deadline, such as bereavement, illness or technical failure, but you’ll need to provide evidence of these to escape the fine.
“If you do have a reasonable excuse for missing the deadline, you should get in touch with HMRC as soon as you can. You’ll still need to file a return, but could escape the £100 fine.”
Time to Pay service
If you are more than three months late filing your return, HMRC can add an extra £10 penalty for each day for the next 90 days.
After six months, you may have to pay a further penalty of 5% of the tax you owe or £300 - whichever is greater. You will also pay interest on the tax you owe on top of any fines.
Mike added: “Tax returns for the current financial year can be filed any time after April 5, 2023, and your tax still won’t be payable until next January, so there’s no reason to delay filing your return - get the job done quickly and avoid a last-minute panic next January.”
He also advised that contacting HMRC as soon as possible can often result in a speedy resolution, often by setting up a Time to Pay payment plan.
Using HMRC’s self-serve Time to Pay facility means customers benefit from a tailored payment plan via monthly Direct Debits. This means they can spread the cost of their tax bill based on how much is owed and the length of time they need to pay.
Self Assessment customers can apply on GOV.UK if they:
- have filed their tax return for the 2021 to 2022 tax year
- owe less than £30,000
- can pay in full within 12 months
If customers owe more than £30,000, or need longer to pay, they should call the Self Assessment Payment Helpline on 0300 200 3822.
A list of alternative payment options, including payment via the free and secure HMRC App, are available on GOV.UK here.
Commenting on Time to Pay, Mike said: “It’s important to note that these payment plans carry interest and, given the rise in the base rate, it will cost you considerably more to pay this way.
“It’s therefore very important that you set aside enough money each month for tax - around 20-25% of your income should be plenty.”
To keep up to date with the latest HMRC news, join our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out four times each week - sign up here.
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