Millions of people across the UK are at risk of penalties after HM Revenue & Customs (HMRC) revealed that 5.4 million taxpayers have yet to submit their self-assessment tax return.
With the 31 January deadline fast approaching, HMRC has urged anyone who has not yet filed to do so immediately to avoid hefty fines.
Tax insurance firm Qdos reacted to the announcement, warning that failing to file and pay on time incurs an automatic ÂŁ100 penalty. Additional charges mount rapidly the longer the delay persists, with daily penalties and further levies imposed after three months, six months and 12 months. Seb Maley, chief executive of Qdos, said: âFail to file your tax return and pay it by midnight on 31 January and youâll be hit with a ÂŁ100 fine immediately. These fines start to rack up, with interest added to the amount you owe. Needless to say, acting sooner rather than later will make a big difference.
âWhatâs more, unfiled, late or incorrect tax returns can increase the likelihood of being investigated by HMRC. Doing everything you can to meet this monthâs deadline and submit an accurate tax return is vital.â
For taxpayers concerned about meeting their liabilities, HMRCâs Time to Pay facility can spread the cost of any outstanding bill into manageable monthly instalments. In its press release, HMRC reminded those who have not filed that even if there is no tax due or if the tax is paid on time, a ÂŁ100 fixed penalty still applies if the return is late.
