More than 3.5 million people have yet to file their self assessment tax returns and pay any tax owed to HM Revenue and Customs (HMRC).
As of January 22, HMRC had received 8,063,550 returns, with 3,500,813 returns still to file by next week’s deadline of 11.59pm on Thursday, January 31.
Last year more than 93% of customers filed their returns by the deadline.
HMRC is reminding customers that if their tax return is late, they will receive a £100 penalty – even if they do not owe any tax.
The longer the delay, the more they will have to pay.
“The deadline for the self assessment tax return is fast approaching but there is still time for the 3.5 million customers who haven’t completed their return to file by 31 January,” said Mel Stride, financial secretary to the Treasury.
“With only seven days to go it is important that customers are reminded of the self assessment deadline in order to avoid paying penalties.”
Of the returns already submitted, 7,359,607 were filed online with 703,943 returns filed on paper.
“Failing to file your tax return on time will cost you £100, you will pay more the later it gets,” said Peter Way-Rider, tax manager at Ellis & Co.
“You will also receive a fine if you fail to pay your tax bill on time."
The penalties for late tax returns are:
- 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 three months, additional daily penalties of £10 per day, up to a maximum of £900;
- after six months, a further penalty of 5% of the tax due or £300, whichever is greater; and
- 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, six months and 12 months.
At Ellis & Co we will prepare your self-assessment tax return for you and submit it promptly," added Peter.
“We will help you structure your affairs for maximum tax efficiency, while protecting you from the penalties every taxpayer dreads.”
For further information about tax returns or any other tax matter contact Peter on 01244 343504.