Millions of people across the UK are at risk of penalties after HMRC revealed that 5.4 million taxpayers have yet to submit their self-assessment tax returns.
With the January 31 deadline fast approaching, HMRC has urged anyone who has not yet applied to do so immediately to avoid hefty fines.
Tax insurer Qdos responded to the announcement, warning that failure to apply and pay on time results in an automatic penalty of £100. Additional fees increase rapidly the longer the delay, with daily fines and additional fees imposed after three, six and 12 months. Seb Maley, CEO of Qdos, said: “If you fail to file and pay your tax return by midnight on 31 January, a £100 fine will be imposed immediately. These fines start accumulating, with interest added to the amount you owe. It goes without saying Acting sooner rather than later will make a big difference.
“What’s more, unfiled, late or incorrect tax returns can increase the likelihood of being investigated by HMRC. Doing everything you can to meet this month’s deadline and file an accurate tax return is vital.
For taxpayers concerned about meeting their obligations, HMRC’s Payment Time Facility can spread the cost of any outstanding bill into manageable monthly instalments. In its press release, HMRC reminded those who had not filed that even if no tax is due or if tax is paid on time, a fixed penalty of £100 still applies if a return is late.
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