Millions risk paying a £100 fine if they do not file their taxes before 31 January

As the year is full steam ahead, less than a month remains until the deadline to file 2022-23 tax returns. According to HMRC nearly 5.7 million people have yet to complete the process and risk a fine of £100 if deadline of 31 January is not met.

A penalty for missing the deadline

As tax season is one of the most important financial milestones of the year many people have proven responsible and completed the process before the turn of the year. According HMRC, 6.5 million people have submitted their taxes already; 25 593 submitted their taxes on New Year's Eve, while 23 724 filed on New Year’s Day.

While the responsible section of society has completed the sometimes dreaded task, millions of applications remain incomplete. Furthermore, the initial penalty for missing the deadline is only £100 but it can snowball into larger amounts if this responsibility continues to be ignored.

Three months after the deadline a £10 daily penalty is added, which is capped at £900.

Six months after the deadline a penalty of 5% or £300 applies whichever is higher

After a year another £300 or 5% is tacked on whichever exceeds the other.

The process is simple

The government makes it quite clear how to take on your taxes filings. From easy payments on their application, to payment plans for people that owe £30 000 and under, and support on GOV.UK. It is important to settle the matter and send in self assessment even if citizens do not foresee any taxes to be paid.

Myrtle Lloyd from HMRC has said:

Don’t put it off, kick start the new year by sorting your self-assessment. Go to gov.uk and search ‘self assessment’ to get started today.

Read more:

⋙ HMRC to start monitoring your bank account in tax crackdown on side hustles

⋙ Jeremey Hunt set to increase council tax: 'This news will heap misery on struggling households’

⋙ Council tax refund issued to Brits - check if you are affected

Sources:

gov.uk: Self Assessment tax returns

Independent: Less than a month for nearly 5.7m people to meet self-assessment deadline