Avoid £100 penalty and meet key HMRC January deadline | Personal Finance | Finance | EUROtoday

New knowledge from HM Revenue and Customs (HMRC) reveals that 342 individuals spent the ultimate hour of 2025 submitting their tax return. As the January 31 deadline looms, a complete of 54,053 individuals welcomed 2026 by submitting their 2024/25 tax return over New Year’s Eve and New Year’s Day.

The busiest interval over these two days was between 11.00am and 11.59am on December 31, with 3,927 individuals submitting their returns. So far, greater than 6.36 million individuals have submitted their tax returns, whereas practically 5.65 million nonetheless want to finish their self-assessment kinds earlier than the HMRC deadline.

Those who fail to satisfy the deadline may face an preliminary late submitting penalty of £100, with potential for additional penalties. This £100 fastened penalty applies even when no tax is due or if the tax is paid on time.

Penalties for late tax returns are:

• An preliminary £100 fastened penalty, which applies even when there isn’t any tax to pay, or if the tax due is paid on time
• After 3 months, extra each day penalties of £10 per day, as much as a most of £900
• After 6 months, an additional penalty of 5% of the tax due or £300, whichever is bigger
• After 12 months, one other 5% or £300 cost, whichever is bigger

Additional penalties for late funds embrace expenses of 5 per cent of the unpaid tax at 30 days, 6 months and 12 months. If tax stays unpaid after the deadline, curiosity will even be charged on the quantity owed, along with the penalties above.

People who full a Self Assessment tax return to pay the High Interest Child Benefit Charge (HICBC) can decide out and select to pay it by way of their tax code through the brand new PAYE digital service, in line with the Daily Record.

Winter Fuel Payments and Pension Age Winter Heating Payment

Pensioners usually are not required to declare their 2025 Winter Fuel Payment, or Pension Age Winter Heating fee in Scotland, inside their tax return for the 2024 to 2025 tax yr, as these funds will probably be addressed within the 2025 to 2026 tax return, which should be submitted by January 31, 2027.

Myrtle Lloyd, HMRC’s chief buyer officer, stated: “New Year is a great time to start afresh. What better way than to ensure your tax affairs are in order for another year than completing your tax return. If you have yet to start, the clock is ticking, go to GOV.UK and start today.”

Comprehensive on-line help and steering is accessible by way of GOV.UK to help individuals in finishing and submitting their tax returns. HMRC defined that taxpayers can start their tax return, save their progress, and return to it a number of instances earlier than submitting it.

After submission, while the excellent quantity would not require quick settlement, it should be cleared earlier than the January 31 deadline, in line with the tax authority. People can arrange alerts by way of the HMRC app to remain knowledgeable about fee due dates and keep away from lacking essential deadlines.

Those unable to satisfy the deadline are inspired to contact HMRC previous to January 31, with the income physique committing to honest therapy for these presenting cheap justifications.

Fraudsters might exploit the deadline interval by distributing counterfeit communications claiming to originate from HMRC. The tax authority warned that login credentials ought to by no means be disclosed to 3rd events.

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