Millions of people across the UK are at risk of penalties after HM Revenue & Customs (HMRC) revealed that 5.4 million taxpayers have yet to submit their self-assessment tax return.
With the 31 January deadline fast approaching, HMRC has urged anyone who has not yet filed to do so immediately to avoid hefty fines.
Tax insurance firm Qdos reacted to the announcement, warning that failing to file and pay on time incurs an automatic £100 penalty. Additional charges mount rapidly the longer the delay persists, with daily penalties and further levies imposed after three months, six months and 12 months. Seb Maley, chief executive of Qdos, said: “Fail to file your tax return and pay it by midnight on 31 January and you’ll be hit with a £100 fine immediately. These fines start to rack up, with interest added to the amount you owe. Needless to say, acting sooner rather than later will make a big difference.
“What’s more, unfiled, late or incorrect tax returns can increase the likelihood of being investigated by HMRC. Doing everything you can to meet this month’s deadline and submit an accurate tax return is vital.”
For taxpayers concerned about meeting their liabilities, HMRC’s Time to Pay facility can spread the cost of any outstanding bill into manageable monthly instalments. In its press release, HMRC reminded those who have not filed that even if there is no tax due or if the tax is paid on time, a £100 fixed penalty still applies if the return is late.
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5.4 million yet to file self-assessment tax returns, warns HMRC