(qlmbusinessnews.com . Tues 4th Feb, 2025) London, UK —
Over a Million Taxpayers Miss Filing Deadline, Faces Penalties
More than 1.1 million taxpayers failed to meet the self-assessment tax return deadline on Friday, according to HM Revenue and Customs (HMRC). Those who missed the deadline now face an initial penalty of at least £100 unless they can provide a valid excuse.
Despite the high number of late submissions, over 11.5 million people successfully completed their tax returns on time, with more than 31,000 filing in the final hour.
Self-assessment tax returns are required for individuals who are self-employed or have multiple sources of income. Taxpayers are also expected to ensure the payment of any tax owed by the 31 January deadline.
However, some taxpayers may have faced additional stress due to IT issues at Barclays, which disrupted payments. The bank confirmed that no customers would be financially impacted by the technical problems, and HMRC reiterated that late payment penalties would not apply until 1 March.
Penalties for Late Filers
Taxpayers who miss the deadline are subject to the following fines:
– An initial £100 penalty for missing the deadline, even if no tax is owed
– Daily fines of £10 after three months, up to a maximum of £900
– Six months after the deadline, an additional penalty of 5% of the tax due or £300, whichever is greater
– A further 5% or £300 fine after 12 months
Myrtle Lloyd, HMRC’s Director General for Customer Services, urged taxpayers to submit their returns as soon as possible to avoid further penalties.
“Filing now will reduce the risk of escalating fines. We encourage anyone affected to act quickly,” Lloyd said.
Interest is also added to unpaid tax bills. Appeals can be made if there is a reasonable excuse for missing the deadline, but a self-assessment return must be filed before an appeal can be submitted.
Criticism of Customer Support
HMRC has come under fire recently for its phone services, with allegations from MPs that the tax authority is providing a “deliberately poor” service to force taxpayers to use online assistance instead.
Chief Executive Jim Harra dismissed the accusations as “completely baseless.”
New Rules for Online Sellers
This year marked the introduction of new rules for online platforms such as eBay and Vinted, which are now required to report sales information to HMRC for individuals who sell 30 or more items or earn at least £1,700.
While this does not introduce a new tax, HMRC said it would use the information to ensure taxpayers are paying the correct amount.
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