Wbg, one of Scotland’s leading independent specialist full-service accountancy firms, has urged taxpayers who missed the Self-Assessment tax return deadline not to bury their head in the sand but instead take immediate action.
According to HMRC, over 11.5 million taxpayers successfully filed their Self-Assessment tax returns by the deadline. But an estimated 1.1 million individuals missed the cutoff, potentially leading to £110 million in late filing penalties.
Those who failed to file by the 31 January deadline face a £100 late filing penalty, even if they owe no tax. And daily interest will accrue on any outstanding tax at an annual rate of 7.25%.
Unpaid tax from 2023-24 left outstanding by 1 March could incur an additional 5% penalty
Gavin Brown, senior tax manager at Wbg, said that the sooner those taxpayers who missed the deadline act, the less penalties they will face.
“HMRC has information on individuals who have yet to file their tax returns and will apply automatic penalties, which get more punitive as time goes on,” he said.
“Interest on late paid tax is already at high rates and is due to rise even further from April 2025.”
Brown says that any taxpayers avoiding dealing with their tax affairs due to inability to pay is only making matters worse, and that payment plans can be agreed with HMRC.
“HMRC is on hand to work with people who can’t pay their taxes on time, so long as they are up front and deal with it rather than ignore the problem that’s brewing,” he said.
“If you have missed the 31 January filing deadline, or if you think you should be doing a tax return and haven’t registered, then acting as quickly as possible is always the best option – the penalties are less punitive and HMRC is good at responding to people willing to work with them, rather than HMRC having to chase down individuals for payments due.”
Brown emphasised that, while it’s known as self-assessment, taxpayers can always rely on professional advisers to make that process as easy and streamlined as possible.
