Taxpayers are being warned that they could face a £100 fine if they miss the looming self-assessment deadline at the end of the month.
As many as 5.4 million people still need to complete their tax returns before the deadline on January 31, with long waits expected for the HMRC helpdesk.
Alastair Douglas, CEO of TotallyMoney, cautioned that last year, taxpayers spent around seven million hours on hold, with waiting times averaging 27 minutes in January.
Mr Douglas said: “With the clock ticking, there’ll be a spike in people picking up their phones to call the HMRC helpdesk.
“But it’s worth remembering that last year taxpayers spent around seven million hours on hold to HMRC, with an average waiting time of 27 minutes during January. And it’s likely that this would have been even longer for those phoning later in the month, as people rushed to file their tax returns ahead of the deadline.
“So while you might just be getting over a busy Christmas and gearing up for the new year, cracking on with your tax return might not only save you time, but also money. That’s because the taxman will start dishing out £100 fines to anybody who files their return up to three months late. And after that, they’ll start getting considerably higher.”
Anyone required to file a tax return for the 2023 to 2024 tax year who misses the January 31, 2025, deadline could face an initial late filing penalty of £100. After three months, additional daily penalties of £10 per day are applied, up to a maximum of £900.
After six months, a further penalty of 5% of the tax due or £300 is applied, whichever is greater. After 12 months, another 5% or £300 charge will be applied, whichever is greater.
Mr Douglas continued: “If you’re unsure if you need to file a tax return, it’s worth double checking, especially if you’ve been selling items on apps like Etsy, Ebay or Vinted — or if you’ve made money from investments, including rental properties, crypto and even tips or commission.
“To make things easier, HMRC has created a tool to help you find out where you stand.”
Myrtle Lloyd, HMRC’s director general for customer services, said: “We know completing your tax return isn’t the most exciting item on your New Year to-do list, but it’s important to file and pay on time to avoid penalties or being charged interest.
“The quickest and easiest way to complete your tax return and pay any tax owed is to use HMRC’s online services – go to GOV.UK and search ‘Self Assessment’ to get started now.”
Once a tax return is filed, payments can be made quickly and securely through the HMRC app.
Customers can set up notifications in the app to remind them when payments are due, so they don’t need to worry about missing deadlines or penalties. Information about the different ways to pay, can be found on GOV.UK .
Who may need to file a return?
If someone regularly sells goods or provides services through an online platform, they may need to pay tax on their income.
Customers can find out more about selling online and paying taxes on GOV.UK by searching ‘online platform income’ or by downloading the HMRC app. The guidance will help them decide if their activity should be treated as a trade and if they need to complete a Self Assessment tax return.
You also may need to file a return if you:
- are newly self-employed and have earned gross income over £1,000
- earned below £1,000 but wish to pay Class 2 National Insurance Contributions voluntarily to protect your entitlement to State Pension and certain benefits
- are a new partner in a business partnership
- have received any untaxed income over £2,500
- receive Child Benefit payments and need to pay the High Income Child Benefit Charge because you or your partner earned more than £50,000.
