HM Revenue and Customs (HMRC) has confirmed that it will waive the £100 late-filing penalty for hundreds of taxpayers who submitted their self-assessment tax returns in the final hour of 2025. According to HMRC data, 342 individuals filed their returns between 11:00 pm and midnight on December 31, narrowly beating the deadline.
Overall, more than 4,000 people filed their 2024-25 tax returns during New Year’s Eve and New Year’s Day, with nearly 3,927 submissions made between 11:00 am and 11:59 pm on December 31—the peak filing period over the two days.
While missing the tax return deadline typically triggers a £100 fixed penalty regardless of whether tax is owed or paid on time, HMRC’s decision to pardon these last-minute filers provides relief to those who acted just in time. Sarah Coles, head of personal finance at Hargreaves Lansdown, advises taxpayers to organize their financial records well in advance to avoid last-minute stress.
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Late filing penalties escalate quickly: after the initial £100 charge, an additional £10 daily penalty applies after three months, reaching a maximum of £900. Six months late, taxpayers face a further penalty of 5% of the tax owed or £300, whichever is greater. At 12 months late, this penalty repeats.
Partnership tax returns are also subject to penalties, with all partners liable if the return is late. Moreover, interest is charged on any unpaid tax.
To avoid penalties and interest, HMRC urges taxpayers to submit their Self Assessment returns and settle any tax due promptly—ideally well before deadlines. Payments must be made within 30 days of the penalty notice to prevent additional charges.