Taxpayers who have yet to file tax return, urged to act now

Those who still haven’t filed and paid their self-assessment tax return are being urged to act now and get their tax affairs back in order.

While nearly 12 million taxpayers managed to beat the 31^st of January deadline, it’s estimated that around one million missed the cut-off date.

Late filing and late payment penalties

The penalties for late tax returns are:

• 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 3 months, additional daily penalties of £10 per day, up to a maximum of £900
• After 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
• After 12 months, another 5% or £300 charge, whichever is greater

How to get back on track

The Low Incomes Tax Reform Group (LITRG) has published four steps to help taxpayers to get themselves back on track:

1. Check whether a return is even needed. In some cases, taxpayers may have received a notice to file a 2024/25 tax return, even though they no longer need to do so. If that is the case for you, you may be able to have your return and late filing penalties cancelled.
2. File outstanding returns as soon as possible. If the return is required and cannot be cancelled, you should take action as soon as possible, submitting the return and avoiding further late filing penalties.
3. Pay the tax that is due. Paying owed tax as soon as you can will prevent additional penalties for late payment. For those who cannot pay in full, HMRC Time to Pay arrangements are available for those eligible; however, interest will continue to apply to late tax.
4. Appeal a penalty. If taxpayers have a reasonable excuse for not meeting the deadline (such as illness or bereavement), they usually have 30 days to appeal any penalties charged.

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