Nearly 600,000 face £100 fine for late self-assessment tax returns

2023-02-01

Around 600,000 face £100 fine for filing self-assessment tax returns late after record 11.7m hit

A record 11.7 million taxpayers have submitted self-assessment returns on time
Some 36,767 people filed tax returns in the hour before the midnight deadline
The number of people missing the deadline is significantly lower than last year

A record 11.7 million taxpayers have submitted self-assessment returns on time – but around 600,000 people who were expected to file missed the deadline and face potential fines.

Some were prepared to cut it fine as 861,085 people filed returns online on deadline day, with 36,767 managing to narrowly scrape through by filing in the hour before the midnight deadline on the January 31 2023.

Despite, the rush to make the deadline by some, the estimated number of people missing the January 31 cut-off is significantly lower than last year, according to HM Revenue and Customs (HMRC) figures.

Around 2.3 million people last year missed the January 31 2022 deadline – although those people could still avoid a penalty by filing the following month, due to the impacts of the coronavirus pandemic.

Around one million people used that extension, leaving about 1.3 million who had still not filed their returns by February 28 last year.

The estimated number of people missing the January 31 cut-off is significantly lower than last year, according to HM Revenue and Customs (HMRC) figures

People can appeal against late filing penalties successfully if they have a reasonable excuse, such as the death of a close relative shortly before the deadline, a serious illness or delays related to a disability.

Fines for filing a tax return late include an initial £100 fixed penalty – even if there is no tax to pay or if the tax due is paid on time.

After three months, there are additional daily penalties of £10 per day, up to a maximum of £900.

After six months, there is a further penalty of 5% of the tax due or £300, whichever is greater.

The 11.7 million returns filed on time this year includes expected returns, unsolicited returns and late registrations.

With more than 12 million customers expected to file a self-assessment tax return for 2021/22, the HMRC is urging those who missed the deadline to submit their returns as soon as possible.

Some 36,767 people filed in the hour before the midnight deadline for submitting returns online on January 31 2023

And after 12 months, the penalty is another 5% or £300 charge, whichever is greater.

There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, six months and 12 months.

Myrtle Lloyd, the HMRC’s director general for customer services, said: “Thank you to the millions of customers and agents who got their tax returns in on time.

“Customers who have yet to file, and who are concerned that they will not be able to pay in full, may be able to spread the cost of what they owe with a payment plan.

“Search ‘pay my self assessment’ on gov.uk to find out more.”

It recently emerged that, earlier on in January, people calling the HMRC’s self-assessment helpline faced a 27-minute waiting time on average.

The HMRC estimated 65% of calls to the self-assessment helpline during the two weeks ending January 8 2023 related to matters customers could have resolved online.

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