Last-Minute Tax Filing: Avoid Penalties Before Midnight Deadline

As the self-assessment tax return deadline approaches at midnight, millions of individuals in the UK still have not submitted their returns. HMRC warns that those who fail to file may face an initial fine of £100, regardless of their tax liability. Approximately 3 million people are at risk of these penalties, and guidance is available online for those in need. New regulations require sellers on platforms like eBay and Vinted to share sales information with HMRC if they sell over 30 items, adding an extra layer of complexity for online sellers. If the deadline is missed, penalties increase progressively, culminating in additional daily fines of £10 after three months, adjustable for particular circumstances and reasonable excuses such as illness or bereavement.

Myrtle Lloyd, HMRC’s customer services director, indicates that customer circumstances affecting non-compliance will be considered on an individual basis. Accountant Benedicta Egbeme emphasizes the importance of engaging with the tax system, suggesting that individuals can make a payment for tax owed even before filing their returns, to mitigate interest charges. Egbeme notes that reasonable excuses for late submissions are taken into account, including serious personal issues and technical problems. It’s crucial for taxpayers to include their bank details on their returns for any due refunds.

In the lead-up to the deadline, HMRC also warns of an increase in tax-related scams, advising individuals to safeguard their accounts and not share sensitive login information. The article highlights that self-assessment is mandatory for anyone with self-employment earnings exceeding £1,000 or for income derived from hobbies, rentals, or international earnings. With ongoing scrutiny over HMRC’s customer service, the agency has denied claims of intentionally poor service to drive taxpayers online for assistance.