Millions Face £100 Penalty as UK Tax Deadline Nears

Millions of UK taxpayers face mounting pressure as the deadline to file self-assessment tax returns for the 2024-25 tax year approaches midnight on Saturday, January 31, 2025. Failure to submit on time will trigger an automatic £100 penalty from HM Revenue and Customs, even if no tax is owed, affecting an estimated two million people who have yet to complete their returns as of Thursday.

HMRC expects more than 12 million individuals to file returns this year, with over 10 million already submitted by the end of the week. The requirement applies to a wide range of earners, including the self-employed, those with side hustles generating more than £1,000, individuals receiving rental income, high earners claiming Child Benefit, and people trading in cryptocurrency. Registration for self-assessment should have occurred by October 5, 2024, and taxpayers can verify their obligations through the HMRC website.

Penalties escalate quickly for late filers. After three months, daily fines of £10 accrue, capped at £900. At six months, an additional charge of 5% of the tax due or £300, whichever is greater, applies, with the same penalty repeating after 12 months. Late payments of any tax...