HM Revenue and Customs (HMRC) is urging the 3.4 million customers to get their Self Assessment tax return done.
More than 12 million customers are expected to file a tax return for the 2021–22 tax year and pay any tax owed by 31 January deadline. To date, almost 8.7 million customers have already filed their tax return.
Last year, more than 10.2 million customers filed their tax returns for the 2020–21 tax year by the deadline on 31 January 2022.
Myrtle Lloyd, director general for customer services, said time is running out for millions of people who still need to file their Self Assessment and pay any tax owed.
Customers who are unable to pay what they owe in full may be able to set up a payment plan, allowing them to spread the cost into manageable monthly instalments. Self Assessment customers can use self-serve Time to Pay on GOV.UK if they:
- Have filed their tax return for the 2021–22 tax year
- Owe less than £30,000
- Can pay in full within 12 months
For customers who pay their current estimated tax bill via Payment on Account, the first instalment for the 2022–23 tax year is due on 31 January.
A full range of payment options is listed on GOV.UK.
Anyone who files their tax return or pays any tax owed after 31 January may face a penalty.
HMRC will treat those with genuine excuses leniently as it focuses on those who persistently fail to complete their tax returns and deliberate tax evaders. 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 per cent of the tax due or £300, whichever is greater
- After 12 months, another 5 per cent or £300 charge, whichever is greater
There are also additional penalties for paying late of 5 per cent of the tax unpaid at 30 days, six months, and 12 months.