HMRC has begun issuing automatic fines to UK households that failed to submit their self-assessment tax returns by the January 31 deadline—a move expected to generate more than £100 million in penalties.
Charlene Young, senior pensions and savings expert at AJ Bell, explained the scale of the issue: “Around one million people failing to file their tax returns could result in HMRC collecting £100 million in automatic fines alone. There is an immediate £100 penalty for late filing.”
Young also advised taxpayers who owe money but lack grounds to appeal the fine: “You may still be able to set up a payment plan to manage your debt and avoid escalating charges. It’s vital not to ignore the problem.”
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HMRC’s chief customer officer, Myrtle Lloyd, expressed appreciation for those who met the deadline but urged late filers to act quickly: “Thank you to the millions who filed and paid on time. If you missed the deadline, submit your return promptly to minimize penalties and late payment interest.”
Financial expert Martin Lewis, speaking before the deadline, emphasized the importance of timely filing and payment. “The initial fine is £100, with further penalties and interest of 7.25% accruing if you don’t pay. My advice: complete your form accurately and submit it as soon as possible. If you anticipate difficulties paying the full amount, pay as much as you can now. Interest is only charged on what remains unpaid, so any partial payment helps reduce charges.”
Lewis added, “If you’re struggling to pay, contact HMRC immediately to discuss your options.”
Ignoring the deadline can lead to escalating financial penalties and added stress, so taxpayers are urged to take action without delay.