January 07: HMRC Warns 5.65m Still to File Self Assessment or Face Fines
HMRC warns that 5.65 million people still need to file a self assessment tax return before the 31 January deadline. Missing the cut-off triggers a £100 fine, with more charges if filing or payment is late. For many, the balancing bill and the first payment on account are also due on 31 January, so cash flow matters. We explain what to do now, how penalties work, and practical steps to avoid costly mistakes.
HMRC warning: File your self assessment tax return now
HMRC says millions still need to submit. This group typically includes self‑employed workers, landlords, company directors, and people with side income, dividends, or capital gains. Some PAYE employees also need to file if untaxed income is significant. If you received a notice to file, you must submit a return even if you have no tax to pay. Filing early reduces stress and errors.
Miss the 31 January deadline and you get a £100 late filing penalty. At three months, daily charges can apply, and further penalties follow at six and twelve months. Late payment also attracts extra penalties and interest. File even if you cannot pay in full to limit charges. See the HMRC update for details source.
What is due on 31 January: bill and payments on account
Many taxpayers must pay the balancing bill for the last tax year and the first payment on account for the current year on 31 January. A second payment on account is due on 31 July. These advance amounts can be large, so check your tax calculation online. If your income fell, you may be able to reduce payments on account.
Estimate your total bill before you file. Ring‑fence funds in a separate account. If income is lower than last year, consider a claim to reduce payments on account, but keep evidence. If you cannot pay in full, set up a Time to Pay plan as soon as your return is filed. Do not ignore HMRC messages.
File faster: documents to gather and common errors
Have your UTR and National Insurance number ready. Gather P60 or P45, P11D, bank interest, dividend vouchers, rental statements, trading income and expenses, pension contributions, Gift Aid, student loan details, and child benefit information if relevant. Matching figures to your records helps avoid corrections and reduces the risk of penalties from mistakes.
Common errors include missing bank interest, entering gross instead of net dividends, double‑counting expenses, and claiming non‑allowable costs. Check dates for income and reliefs, and ensure pension and Gift Aid entries align with provider statements. A simple step‑by‑step guide can help you avoid errors source.
If you cannot file or pay on time
If you miss the deadline, file as soon as possible to stop daily penalties from building. Paying something is better than nothing because late payment penalties are a percentage of the unpaid tax. Interest also applies. Keep proof of issues that delayed you, such as illness, in case you need to appeal a penalty.
If you cannot pay in full, you may be able to set up a Time to Pay arrangement online after filing. This can spread the bill into monthly instalments. If there is a genuine reason you could not file, you can appeal a late filing penalty with supporting evidence. Keep HMRC letters and submission receipts.
Final Thoughts
The message is simple: file your self assessment tax return well before the 31 January deadline and know exactly what you need to pay. Confirm your balancing bill and whether payments on account apply. Gather documents first, double‑check entries, and submit even if you cannot pay in full. If income is down, consider a reduction to payments on account, but keep records to support your claim. If cash is tight, arrange a Time to Pay plan quickly after filing. Acting now reduces late filing penalty exposure, cuts interest costs, and protects household cash flow. We advise setting reminders for both 31 January and 31 July dates to stay on track.
FAQs
Who needs to file a self assessment tax return?
You must file if you are self‑employed, a landlord, a company director, or have untaxed income such as dividends, capital gains, or side gigs. HMRC may also require a return if your income or reliefs need checking. If you received a notice to file, you must submit a return even with no tax due.
What happens if I miss the 31 January deadline?
You get a £100 late filing penalty immediately. Further penalties can build after three, six, and twelve months. Late payment also attracts percentage penalties and interest. File as soon as possible to stop extra charges. If you cannot pay in full, set up a Time to Pay plan to spread the cost.
Do I have to pay my tax bill on 31 January too?
Many people must pay both the balancing bill for the last tax year and the first payment on account for the current year on 31 January. A second payment on account is due on 31 July. Check your HMRC calculation to confirm amounts and plan cash flow early.
Can I reduce my payments on account?
Yes, if your current year’s income is likely to be lower, you can ask HMRC to reduce payments on account. Estimate carefully and keep evidence, because underpaying can lead to interest and potential penalties. Update your estimate if circumstances change, and review again before the 31 July instalment.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
