ISLANDERS REMINDED TO FILE THEIR TAX RETURN BEFORE 31ST JANUARY DEADLINE

With less than a month to go, the countdown is on for 5.4million people who still need to complete and pay their Self Assessment and avoid penalties, HM Revenue and Customs (HMRC) warns.

Thousands of taxpayers have already done so by completing their tax returns before the fizz was barely flat on New Year’s Day. HMRC has revealed more than 24,800 people filed on 1st January. A further 38,000 had even squeezed theirs in before the bells on 31st December, with 310 filing between 23:00 and 23:59.

Filing your tax return and paying on time plays an important role in supporting public services and the government’s Plan for Change, which is delivering economic stability and investment across the UK. Anyone who is yet to file their tax return can do so online, via GOV.UK.

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Anyone required to file a tax return for the 2023 to 2024 tax year who misses the 31st January 2025 deadline could face an initial late filing penalty of £100.

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.”

The penalties for late tax returns are:

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• An initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
• After 3 months, additional daily penalties of £10 per day, up to a maximum of £900
• After 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
• After 12 months, 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, 6 months and 12 months. If tax remains unpaid after the deadline, interest will also be charged on the amount owed, in addition to the penalties above.

Criminals use emails, phone calls and texts to try to steal information and money from taxpayers. Before sharing personal or financial details, people should search ‘HMRC tax scams’ on GOV.UK to access a checklist and help decide if the contact received is a scam.