HM Revenue and Customs (HMRC) has imposed automatic £100 fines on approximately one million UK households this week after they failed to meet the January 31 deadline for submitting their self-assessment tax returns.
Each year, millions of individuals are required to complete a tax return for various reasons, including self-employment, additional income sources, savings income above certain thresholds, or liability for the Child Benefit High Income charge.
This year, HMRC revealed that about one million taxpayers missed the compulsory deadline for filing and payment. These taxpayers will automatically receive a £100 penalty unless they can successfully appeal with a valid reason.
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In addition to the fine, those who have not yet paid their tax bills will incur interest on any outstanding amounts. The £100 fine is a fixed charge issued regardless of how late the return is submitted.
HMRC reported receiving 11,489,825 returns by the deadline, encompassing expected submissions, voluntary returns, and late registrations. The one million figure remains provisional and may be adjusted once all data is finalized.
Charlene Young, senior pensions and savings expert at AJ Bell, commented: “With an estimated one million people missing the deadline, HMRC stands to collect around £100 million in automatic fines alone. The £100 penalty is automatic for any late filing.”
Among those who filed on time, 475,722 taxpayers submitted their returns on the final day, Saturday, with 27,456 filing in the last hour before the midnight deadline. The peak hour for submissions was between 5pm and 6pm, when 32,982 returns were processed.
On deadline day, HMRC handled 5,409 webchats and 10,483 phone calls through its helplines. After initially planning to keep phone lines closed on the deadline, HMRC reversed its position following media attention.
Taxpayers who miss the deadline but have a reasonable excuse may be able to appeal their penalties. Additionally, those unable to pay their tax bill in full can apply for “time to pay” arrangements, subject to eligibility criteria.
Ms. Young advised: “If you cannot appeal your fine but still owe tax, setting up a payment plan can help you manage your debt. It’s vital not to ignore the situation.”
Myrtle Lloyd, HMRC’s chief customer officer, urged prompt action: “Thank you to the millions who filed and paid on time. For those who missed the deadline, file your return as soon as possible to avoid increased penalties and interest.”
Taxpayers can start submitting self-assessment returns for the 2025-26 tax year from April 6, 2026.