“Less Distraction, More Action!” HMRC plea as nearly 4 million yet to file tax self-assessments.

As the 31 January Self Assessment deadline rapidly approaches, HM Revenue and Customs (HMRC) is calling on the 3.8 million people who have yet to file their tax returns for the 2022 to 2023 tax year to act immediately.

Failing to meet the deadline could result in a £100 penalty, with additional charges for late payment of taxes owed.

To date, over 8.3 million online returns have been received, but HMRC expects more than 12.1 million in total.

Myrtle Lloyd, HMRC’s Director General for Customer Services, emphasises the importance of timely action: “If you are a Self Assessment taxpayer, now is the time to take action and get your return done.” She also encourages taxpayers to utilize HMRC’s online resources on GOV.UK for guidance.

Submitting a tax return allows taxpayers to easily calculate what they owe and make payments online or via the HMRC app.

For those who cannot pay in full, HMRC offers support in setting up an affordable Time to Pay arrangement.

This option is available online for debts under £30,000.

The penalties for missing the Self Assessment deadline start with an initial £100 fixed charge, applicable even if no tax is due or if the tax is paid on time.

After three months, additional daily penalties of £10 per day, up to £900, are imposed. Six and twelve months after the deadline, further charges of 5% of the tax due or £300, whichever is greater, are added.

However, HMRC will consider individual circumstances. Those with a reasonable excuse for missing the deadline may avoid penalties.

Late tax payments also attract additional penalties of 5% at 30 days, six months, and twelve months, along with interest on any late payments.

HMRC advises taxpayers to first seek answers online for common queries before contacting them directly.

Online tools can help determine if a tax return is necessary, provide assistance on completing it, and track refunds.

Those who believe they no longer need to complete a Self Assessment for the 2022 to 2023 tax year should inform HMRC before the deadline to avoid penalties. HMRC has produced instructional videos for those who are self-employed and those who are not, explaining how to stop Self Assessment online.

Finally, HMRC cautions customers about the risk of scams and advises never to share login details with anyone, including tax agents. Comprehensive scam advice is available on GOV.UK.