Over One Million Taxpayers Miss Self-Assessment Deadline, Facing £100 Penalties

Approximately one million taxpayers in the UK failed to submit their self-assessment tax returns by the January 31 deadline, resulting in automatic £100 penalties from HM Revenue and Customs (HMRC). This situation is expected to generate over £100 million in fines for the tax authority, as reported by HMRC.

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HMRC disclosed that 11,489,825 returns were filed on time for the 2024-25 tax year, with 475,722 submissions occurring on the final day alone. Notably, 27,456 individuals filed their returns in the last hour before the midnight cut-off. The busiest hour for submissions was between 5 PM and 6 PM on January 31. This year's figures indicate a slight improvement compared to the previous year, where over 1.1 million taxpayers missed the deadline.

One million people face fines as HMRC tax deadline passes

Late filers face an initial £100 penalty, which applies even if no tax is owed. Additional penalties accrue after three months, with daily fines of £10, capped at £900, and further charges at six and twelve months. Tax experts estimate that around 600,000 individuals with no tax liability have been fined in the past five years. The penalties can escalate significantly, with interest rates on unpaid tax currently at 7.75%.

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Charlene Young, a senior pensions and savings expert at AJ Bell, noted that the estimated one million late submissions could yield HMRC £100 million in automatic fees alone. She emphasized the importance of addressing tax obligations promptly to avoid further financial repercussions.

Over 1 million miss tax return deadline, in £100m windfall for HMRC

Myrtle Lloyd, HMRC’s chief customer officer, expressed gratitude to the millions who filed on time and urged those who missed the deadline to act quickly to mitigate penalties. She stated, “Anyone who missed the deadline should file their return as soon as possible, as penalties and late payment interest may be charged.” HMRC has also extended its helpline and webchat services over the weekend to assist late filers, responding to previous criticisms regarding accessibility.

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Despite the improvements in submission rates, critics have highlighted ongoing issues with HMRC's customer service. Accountants have reported long wait times when attempting to contact HMRC, with some calls dropping after extended periods. John Hood from Moore Kingston Smith remarked on the difficulties faced by taxpayers in reaching HMRC, indicating that the shift towards digital interactions may not resolve these service challenges.

HMRC beginning to issue £100 fines from Sunday for UK households

Taxpayers who missed the deadline are encouraged to file their returns immediately to minimize penalties. HMRC will consider reasonable excuses for late submissions, which may allow some individuals to avoid fines. The next opportunity to file self-assessment returns for the 2025-26 tax year will begin on April 6, 2026. Tax experts warn that as more individuals become liable for self-assessment, the risk of missing deadlines may increase, leading to potentially significant financial penalties.

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