Expert Sounds Alarm: Over 5 Million Brits Could Pay £100 Fine for Late Self‑Assessment Tax Returns

Don’t Let the Taxman Crash Your Party: Filing Your Self‑Assessment Before January 31

Heads up! By the end of this month, over 12 million Brits will have wrapped up their 2022‑2023 self‑assessment tax returns. If you’re part of the 5.7 million who haven’t yet hit “submit,” the clock is ticking – and with it, a hefty penalty.

Why the Deadline Matters

In the UK, you’re stuck with one route: online filing. The paper deadline went haywire on October 31, so all that is left is click, save, and roll. If you miss the January 31 cut‑off, you’ll face:

£100 fine for a filing up to three months late.
After that, the penalties start to grow like a tick‑to‑the‑future showdown.

Penalty Breakdown – Time for Some Numbers

Late Filing Penalties

3 months late: £100
3 to 6 months late: £10/day up to 90 days (max £900)
6 months late: 5% of the tax owed or £300, whichever is higher.
12 months late: 5% of the tax owed or £300, whichever is higher – in rare cases you could owe up to 100% of the tax.

Late Payment Penalties

Within 30 days: 5% of the tax owed
Within 60 days: an extra 5%
Beyond a year: yet another 5%

What the CFO is Saying

“Never underestimate the taxman’s appetite,” warns Nik Hynes, CFO at New Millennia (who also offers funding, payroll, and b‑office support). “File online before January 31 or you’ll be paying the penalty police a hefty fine.”

How to Avoid the Taxman Act (And Your Wallet)

Gather your figures: Income, allowances, expense receipts.
Login to the HMRC online portal and fill in the details.
Double‑check for errors – a single typo could add a flash of penalty.
Pay any due amount outright or set up a payment plan.
Keep a copy for your records – you’ll need it if the penalty officer comes knocking.

Remember: the sooner you get it out of the way, the less chance that the taxman will show up unannounced in your inbox, demanding a “strictly punitive” “£100” or a fine that feels like a gang‑up on your bank account.

Final Thought

Think of filing as a “check‑in” with your financial self. It’s not just about penalties – it’s about having a clear picture of where you stand, keeping the tax system at bay and avoiding that little orange bill that can rip through your budget.

When are the self-assessment tax return deadlines?

Double‑Check Your Tax Bill (or Keep It One‑Off)

Got a tax bill that’s twice a year? Not always. Here’s the quick cheat sheet to see if you’re getting gobbled up by two payments or just one.

When You’re Not Hooked on the January/July Split

Paying less than £1,000 this round – That’s tiny so you can sneak past the two‑payment rule.
Dumping more than 80 % of last year’s tax – Because if you’re already giving the government the bulk of what you owe, we say “nah, we’ll single it out.”

What Happens If You’re on the 2‑Payment Schedule?

Your dues fall on the 31st of January and July. Each hit is a straight‑up half of the tax you owed last year.

Bottom line? Keep a calendar open for those dates, keep your tax code happy, and you’ll save the hassle of juggling two payments.

Who needs to make this payment?

Do You Need to File a Tax Return?

Tax season can feel like a cryptic crossword, but we’re here to help you spot when you’re actually supposed to fill in those forms.

When the Bells Start Ringing

Self‑employed?? If you’ve been running your own bombastic one‑man show as a “sole trader” and rake in more than £1,000 before you can claim any tax reliefs, you’re on the return radar.
Business partner? Being a partner in a partnership means your slice of the pie counts as taxable income.
£100,000+ in tax‑able income? That line item will push you into mandatory filing territory.
High Income Child Benefit Charge? If your net earnings slap you into that charge, you need to report it.

Hidden Income That Sneaks In

Sometimes money comes from sources that aren’t obvious—think of those little “unexpected” gifts:

Some COVID‑19 grant or support payment that slipped into your bank account.
Profit from renting out your property (even that tiny attic studio).
Gracious tips and commissions from people you’ve helped.
Essential interest, investments, or dividend returns that keep your savings humming.
Any foreign income you earned on the globe or at a nearby airport.

Don’t stress—if you see any of the above, it’s time to grab a cup of tea and file that return. And remember, filing correctly could save you from a future tax hangover. Good luck, champ!

How can I make this payment?

How to Throw Your Self‑Assessment into the Money Stream

Three Bank‑Boys Ways to Pay

When you’re ready to pay HMRC for your self‑assessment, you’ve got three friendly options. Each one has its own pace, so pick the one that gives you enough breathing room before the deadline.

Faster Payments – Grab it online or give the bank a ring. Your money hops straight to HMRC on the same day, or else the next business day. Even weekends and bank holidays won’t slow it down.
CHAPS – Like a high‑speed express line, CHAPS gets your cash in on the same working day – just make sure you finish the transfer during your bank’s processing hours.
Bacs – Take the leisurely route. This takes about three working days, so start early if you choose this one.

Heads up: While Faster Payments and CHAPS are almost instant, Bacs can feel like a slow‑moving train. Give yourself a buffer so you don’t miss the deadline.