HM Revenue and Customs (HMRC) has revealed that approximately 1.1 million people missed the deadline for submitting their annual tax returns, and now face a minimum penalty of £100, unless they can provide a valid reason for the delay. The deadline, which passed at midnight on Friday, was met by over 11.5 million people, with more than 31,000 of them completing their returns in the final hour before the cutoff.
Self-employed individuals and those with multiple income sources are among those required to file a tax return annually. Most ensure their taxes are paid, though some encountered IT issues, particularly with Barclays' payment services, which caused some last-minute stress. However, tax payments are not due until the beginning of March, so those who completed their returns on time will avoid fines.
For those who missed the deadline, the penalties are significant. These include an initial £100 fine, with daily charges of £10 after three months, capped at £900. After six months, further penalties apply, including a charge of 5% of the tax owed or £300, whichever is greater, and a similar penalty after 12 months.
HMRC's Myrtle Lloyd urged those who missed the deadline to submit their returns quickly to avoid further penalties. The new tax rules also require online platforms like eBay and Vinted to report sales information to HMRC for individuals who sell 30 items or more or earn £1,700 or more.
