HMRC tax fine warning for one million people on March 3 – penalty of 5%

The deadline to file your tax return for the 2024/25 tax year, and pay any tax owed, was January 31

One million taxpayers have until March 3 to avoid additional fines from HMRC for missing the self-assessment tax deadline.

There are many reasons why you need to file a self-assessment tax return. For example, if you are self-employed, or if you earned extra income outside of your main employment.

You may also be required to do self-assessment if you earn income from renting out a property, or if you’re a high earner and you claim Child Benefit.

The deadline to file your tax return for the 2024/25 tax year, and pay any tax owed, was January 31. If you didn’t pay your tax, HMRC starts to charge penalty of 5% of the tax unpaid 30 days after the deadline – so from March 3.

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This is then repeated at six months and 12 months if the tax still remains unpaid. An estimated one million people missed the January 31 deadline and were hit with an instant £100 fine for not filing their tax return on time.

The penalty increases to fines of £10 a day, up to a maximum of £900, if you still haven’t filed after three months – then after six months, you’re charged 5% of tax owed or £300, whichever is greater.

This is then repeated again after 12 months. The latest figures from HMRC show 475,722 taxpayers waited until January 31 to file their tax return, with 27,456 people submitting theirs in the final hour before midnight.

More than 12 million people were expected to file a tax return and pay any tax owed for the 2024/25 tax year. More than 11.48 million people filed in time.

Myrtle Lloyd, HMRC Chief Customer Officer, said: “Thank you to the millions of people and agents who filed their self-assessment tax return and paid any tax owed by 31 January.

“Anyone who missed the deadline should file their return as soon as possible, as penalties and late payment interest may be charged.

“HMRC digital channels are always the quickest and easiest way for people to sort their tax affairs. Search ‘self assessment’ on GOV.UK to find out more.”

Do I need to send a self-assessment tax return?

According to MoneyHelper.org.uk, you might need to file a self-assessment tax return if:

• Your self-employment income was more than £1,000 (before taking off anything you can claim tax relief on)
• Your income from renting out property was more than £2,500 (you’ll need to contact HMRC if it was between £1,000 and £2,500)
• You earned more than £2,500 in untaxed income, for example from tips or commission
• Your income from savings or investments was £10,000 or more before tax
• You need to pay Capital Gains Tax on profits from selling things like shares or a second home
• You’re a director of a company (unless it was a non-profit organisation, such as a charity)
• You, or your partner’s, income was over £60,000 and you’re claiming Child Benefit
• You have income from abroad that you need to pay tax on, or you live abroad but have an income in the UK
• Your total taxable income was over £150,000
• You’re a trustee of a trust or registered pension scheme
• Your State Pension was your only source of income and was more than your personal allowance
• You received a P800 from HMRC saying you didn’t pay enough tax last year.

You can also check online through the HMRC website to see if you need to send a tax return.