More than 12 million Brits are expected to complete their self-assessment tax return for the period 2021-2022 by the end of January.
If you’re amongst one of the 5.7 million Brits that are yet to file their tax return, it’s best to get started as soon as possible to avoid the late filing penalty of £100.
Dan Whittaker, Personal Finance Expert at Little-Loans.com is warning Brits to file their tax return before the 31 January to avoid penalties.
Whittaker said, “With the deadline to submit a paper return having passed on the 31st October, the only way Brits can complete their tax return is online.
“Whilst HMRC waived penalties for those who missed the January deadline in 2022 and 2021, only fining Brits if they missed the extended deadline of the 28th of February, the penalty is set to return this year.”
He warned that 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 3 months, additional daily penalties of £10 per day may be charged, up to a maximum of £900, then after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater.
He warned that after 12 months, another 5% or £300 charge, whichever is greater, and there are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months.
Whittaker added, “Whilst 2020 was a record-breaking year for Brits making their tax return, with only 600,000 Brits filing past the deadline, the impact of the COVID-19 pandemic inevitably saw increasing numbers of Brits filing their tax returns past the deadline.
“In 2021 and 2022, HMRC extended the deadline so that Brits had a further month to complete their tax return before penalties were applied.
“Brits should be warned that the deadline for completing tax returns will not be extended this year and that the usual late penalties will apply. If you’re one of the 5.7 million Brits that have not filed their return yet, it is best to get started with the process ASAP to avoid any unwanted fines.”