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According to HM Revenue and Customs (HMRC), approximately one million individuals failed to meet the deadline for submitting their tax returns and are now subject to penalties. The UK tax authority reported that 27,456 people filed their returns during the last hour before the midnight deadline on Saturday for the 2024-25 tax year. HMRC also kept helplines open and extended webchat services over the weekend to support taxpayers, with the highest volume of online self-assessment submissions occurring around 17:00 GMT on Saturday.
On the final day alone, close to 476,000 returns were submitted out of a total of roughly 11.5 million for the tax year. Those who missed the filing deadline are automatically charged a £100 penalty. Myrtle Lloyd, HMRC’s chief customer officer, expressed gratitude to the millions who submitted their returns and paid owed taxes on time, while advising those who missed the deadline to file as soon as possible to avoid further charges. She said, “Anyone who missed the deadline should file their return as soon as possible, as penalties and late payment interest may be charged.”
The self-assessment system applies mainly to those whose income isn’t fully taxed through PAYE (pay-as-you-earn), including people earning more than £1,000 in the 2024-25 financial year from self-employment or property rental. Conversely, certain groups, such as those previously required to file due solely to earning over £150,000 or those who have moved to paying the high income child benefit charge through PAYE, were not obligated to submit returns this year. A comparable number of taxpayers also missed the deadline the previous year.
Penalties for late filing start with a fixed £100 charge, regardless of whether tax is owed or paid on time. If a return remains outstanding after three months, additional daily fines of £10 can apply, capped at £900. After six months, further penalties equal to 5% of the tax due or £300 (whichever is greater) can be imposed, followed by the same again after 12 months. Separate penalties related to late tax payments also apply, including charges of 5% of unpaid tax at 30 days, six months, and twelve months, with interest potentially added on overdue amounts. HMRC may waive fines for those with reasonable excuses, but tax experts recommend paying the initial penalty to avoid accruing interest on unpaid penalties during any appeal process. Charlene Young from AJ Bell advised, “Although it involves shelling out cash, it avoids you paying interest on the penalty itself from the date it became due if you lose your appeal.” She also stressed the importance of not ignoring outstanding tax debts, suggesting payment plans for those unable to pay immediately
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