If you’re required to submit a tax return and miss the 31 January deadline, HMRC will automatically issue you with a £100 fine. You’ll be charged this even if you don’t owe any tax.
If your return is three months late, you’ll be charged a daily penalty of £10 per day for up to 90 days (up to a maximum of £900) and if it is six months late, you’ll have to pay a further £300 or 5% of the tax you owe, whichever is greater. The penalties continue to mount up after this, so try to get your return in as soon as you possibly can.
If you miss the deadline and are hit with a penalty, it may be cancelled or reduced if you have a reasonable excuse, for example you had an unexpected stay in hospital that stopped you sorting out your tax affairs, or a fire, flood or theft prevented you from completing your tax return.
You can download help sheets and guidance to help you complete your tax return here. You can also call HMRC’s self-assessment helpline on 0300 200 3310 if you need advice or help on any sections. Remember, if you’re not sure whether you need to complete one or not, you can check online, or it may be worth calling HMRC to check ahead of the deadline – it will hopefully help avoid any potential fines, and give you peace of mind….
Have you ever missed the 31 January tax deadline, or are you worried about how you’ll pay your tax bill this year? You can join the money conversation on our community forum or leave a comment below.