Tax warning as Britons need to ‘take action’ ahead of Self Assessment deadline or risk £1,600 penalty

Last Updated, Jan 24, 2024, 12:40 PM

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Millions of Britons are being urged to “take action” or face a tax charge of up to £1,600 ahead of an important HM Revenue and Customs (HMRC) deadline. The last day someone can file a Self Assessment tax return for the 2022-23 tax year is January 31 with the 3.8 million people yet to do so.

If a self-employed taxpayer does not do this by the deadline, they could be hit with a £100 penalty from HMRC but if they do not file for a year, they could pay up to £1,600 in penalties. HMRC is currently expecting more than 12.1 million tax returns to be filed for the 2022-23 tax year along with any payment that is owed. As of January 23, more than 8.3 million online returns have already been received.

The deadline to file a Self Assessment form is looming

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Here is a full list of the tax penalties someone could accrue if they do not file their Self Assessment return.

These include:

An initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
After three months, additional daily penalties of £10 per day, up to a maximum of £900
After six months, a further penalty of five per cent of the tax due or £300, whichever is greater
After 12 months, another five per cent or £300 charge, whichever is greater.

Combined, these HMRC tax charges add up to a maximum penalty of £1,600 over the space of one year.

Myrtle Lloyd, HMRC’s Director General for Customer Services, outlined what self-employed Britons need to do to avoid these charges.

She explained: “If you are a Self Assessment taxpayer, now is the time to take action and get your return done.

“People can familiarise themselves with the process by checking out HMRC’s online resources on http://GOV.UK .

Self-employed taxpayers have only days left to file

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“Once a tax return is submitted, it’s easy to find out what’s owed and to pay online or using the HMRC app. Just search ‘pay my Self Assessment’ on http://GOV.UK to find out more.”

For taxpayers unable to pay in full, HMRC has services available which help people set up an affordable way for people to pay what they owe.

For examples, those looking to file may be able to set up a Time to Pay arrangement and can find out how to do this online, without speaking to HMRC, if they owe less than £30,000.

It is possible to file for taxpayers to pay Self Assessment tax bills either online or using the HMRC app.

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