Up to a million people across the United Kingdom have just one day left to notify the tax authorities of their obligation to file a tax return — or face an automatic £100 fine, rising to as much as £900 in daily penalties.
The warning, published on Saturday 4 October, comes as HMRC’s Self Assessment registration deadline falls on Monday, 5 October. Anyone who became self-employed, started earning untaxed income, or fell into one of the Self Assessment categories during the last tax year must register their obligation by the cut-off.
Who needs to act now
According to HMRC, a tax return is required if, between 6 April and 5 April of the previous tax year, you were a self-employed sole trader earning more than £1,000, a partner in a business partnership, or liable for Capital Gains Tax. Others affected include those paying the High Income Child Benefit Charge, landlords earning rental income, investors receiving dividends, and workers with untaxed earnings such as tips, savings interest or foreign income.
Lee Murphy, managing director of The Accountancy Partnership, warned that the people most likely to be caught out are not deliberate tax avoiders. “They’ll be people who started a business, began freelancing in the evenings as a side hustle or became landlords,” he said. “None would immediately think of themselves as Self Assessment people until the letter arrives.”
How the penalties stack up
Missing Monday’s deadline triggers an immediate £100 fine, even if no tax is owed. After three months of non-compliance, HMRC adds daily penalties of £10 per day up to a maximum of £900. At six months, a further charge of 5% of the tax due or £300 — whichever is greater — applies, with an identical additional penalty after 12 months.
Earlier this year, roughly one million Britons missed the filing deadline and were hit with the instant £100 fine, underscoring how widespread the problem has become. The simplest way to resolve the situation is to file through the official government portal at gov.uk, which offers online Self Assessment registration and filing.
Source: The Sun