People must inform HMRC by October 5 to avoid automatic fines. Missed deadlines lead to escalating penalties up to £900.
HMRC Warns Millions of Households About 48-Hour Automatic Fine
By Chourouk Derkaoui
Published on 3 October 2024 08:30
People have been warned that they need to tell HMRC important information soon, or they could face fines of up to £900.
HMRC Warns Taxpayers to Meet Self-Assessment Deadline to Avoid Fines
The deadline for self-assessment is October 5, and you must report any income you've received in the past year that hasn’t been taxed. If you fail to declare this income by the deadline, you’ll get an automatic £100 fine, which is set to increase after a while, reports BirminghamLive.
Alastair Douglas, CEO of TotallyMoney, explained: "October 5 marks the self-assessment registration deadline, meaning you’ll need to notify HMRC if you’ve received income over the past year and haven’t yet paid tax on it. While you might think it only applies to work you’ve been paid for, it also includes other income.
"This might include money earned from savings and investments, rental income, and if you’ve made more than £1,000 from selling or reselling items on places like eBay, Depop, and Vinted. So check online to find out if you need a tax return.
“If you don’t register by the deadline, there’s an automatic £100 fine—even if there’s no tax due. If you haven’t paid that after three months, HMRC will charge you £10 per day up to £900, and after six months, 5% of the tax due or £300 , whichever is higher. This will repeat again after 12 months, so it’s important to stay on top of things from the start.
“This means getting everything ready for the October 31 deadline if you’re submitting a paper return, or by midnight on January 31 if you’re submitting your return online. But if possible, you shouldn’t leave things to the last minute.
"That’s because with more than 12 million people filing for self-assessment, government helplines are likely to jam, making it difficult to get through to advisers and potentially scuppering your chances of meeting the deadlines.”
How to Avoid HMRC Penalties
You can often avoid a penalty for failing to notify HMRC if you submit your 2023/24 tax return online and pay any income tax owed by 31 January 2025, even if you missed the notification deadline. However, not registering for self-assessment could lead to forgetting to file your return, which would result in a £100 fine and possibly further penalties.
HMRC advises filing your return early to reduce stress, give you more time to explore payment options, claim any refunds sooner, and avoid mistakes that can happen if you're in a rush.