HMRC Penalizes Over 1 Million Late Tax Filers

Over 1 million taxpayers missed the January 31 deadline for submitting their Self Assessment tax returns, resulting in a £100 penalty from HM Revenue & Customs (HMRC). Approximately 11.5 million returns were submitted on time, while about 1.1 million remain outstanding, with potential fines increasing over time if not addressed. Despite a common misconception, it is not only the self-employed who must file these returns, as frozen tax thresholds and interest rate changes have pushed more people into eligibility. HMRC encourages late filers to submit their returns promptly to avoid escalating penalties, which include daily fines after three months and interest on late payments. Those unable to pay in full may set up a payment plan if they meet specific criteria, such as owing less than £30,000 and having no other debts with HMRC. This payment plan can help spread the cost and mitigate additional fees, with interest continuing to accrue on unpaid taxes.