A third of self-assessment tax payers are yet to submit their yearly return to HMRC, as the tax office hands a last-minute warning ahead of the 31 January deadline.
Around eight million people have already filed self-assessment tax returns for the 2016/17 tax year, according to HMRC.
With just seven days to for the remaining three million self-employed and sole traders to submit their returns, HMRC has reminded tax payers that the hard deadline for paying any tax owed is 31 January and reiterated that penalties for late filings escalate over time.
Anybody missing the deadline will automatically receive a £100 fine. Crucially, even if no tax is owed, failure to submit a tax return will still result in a penalty.
Penalties for late tax returns
- A fixed £100 fine for all submissions after deadline
- After three months, additional daily penalties of £10 per day, up to a maximum £900
- After six months, a further penalty of five per cent of the tax due, or £300 (whichever is greater)
- After 12 months, another five per cent or £300 charge (whichever is greater)
- Additional penalties for paying late of five per cent of the tax unpaid at 30 days, six months and 12 months
Angela MacDonald, director general of customer services at HMRC, said: “The seven-day countdown to 31 January has now begun. Put a stop to that niggling feeling and do your self-assessment now. Our helpful online services offer support and advice, so you can complete your tax return quicker than you think.”
Don’t forget to budget for payments on account towards next year’s tax bill
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