One Million People Miss HMRC Tax Return Deadline
An estimated one million individuals missed the tax return submission deadline set by HM Revenue and Customs (HMRC), placing them at risk of penalties. This year, 27,456 taxpayers rushed to file during the final hour before the midnight cut-off for the 2024-25 tax returns.
Key Statistics on Tax Returns
– Total filings: Approximately 11.5 million submissions were recorded, with 475,722 people filing on the final day.
– Busy period: The peak hour for online self-assessment submissions was between 17:00 GMT on Saturday.
Myrtle Lloyd, HMRC’s chief customer officer, expressed gratitude to the millions who met the January 31 deadline. She urged those who have yet to file to act quickly to mitigate potential penalties.
Who Needs to File?
While many taxpayers have tax automatically deducted from their wages through PAYE (pay-as-you-earn), those with multiple income sources must submit a self-assessment annually. This applies to individuals earning over £1,000 in the 2024-25 financial year from:
– Self-employment
– Renting out property or land
Notably, individuals earning over £150,000 who only needed to file due to high income, or those paying the high income child benefit charge through PAYE, may not be required to file this year.
Penalties for Missing the Deadline
Failing to meet the tax return deadline can lead to significant financial repercussions:
– Initial penalty: A fixed £100 charge, applicable even if no tax is due or the owed tax is paid on time.
– Further penalties:
– After three months: An additional daily penalty of £10 per day, capping at £900.
– After six months: A charge of 5% of the tax due or £300, whichever is greater.
– After twelve months: Another 5% charge or £300, whichever is greater.
– For late payments: Recurring penalties of 5% on unpaid tax due at 30, six, and twelve months post-deadline.
Mitigating Penalties
HMRC evaluates individual circumstances for missed deadlines; those with a reasonable excuse may avoid fines. Tax analysts recommend that anyone appealing should still pay the initial penalty to prevent accruing interest on the fine if the appeal is unsuccessful.
Charlene Young, a senior pensions and savings expert at AJ Bell, advises that even without a valid excuse, individuals can set up a payment plan for any outstanding amounts. Prompt action is crucial to avoid escalating financial stress.
Conclusion
Missing the HMRC tax return deadline affects approximately one million people this year. With serious penalties in place, it’s imperative to stay informed and proactive. If you find yourself among those who missed the deadline, filing your return as soon as possible may help minimize penalties and keep your finances intact.