HMRC is set to issue fines of up to \u00a31,600 to people who miss a vital tax deadline on Thursday.<\/p>\n
His Majesty\u2019s Revenue and Customs<\/a> sets a deadline of July 31 each year for people who need to pay their self-assessment tax return.<\/p>\n For those who pay online, self-assessment tax<\/a> returns have a deadline of January 31 each year, for the previous April to April financial year\u2019s figures. However, those who have a large tax bill are usually offered the chance to pay it in instalments.<\/p>\n For those with a bill of over \u00a31,000, the bill can be split up into two chunks throughout the year, rather than paying the entire thing in one go. The two payments are due on January 31 and July 31.<\/p>\n But according to finance firm Updraft, the number of people missing HMRC<\/a> Self Assessment deadlines remains \u2018stubbornly high\u2019 each year. They said that more than 600,000 people missed HMRC<\/a>\u2019s deadlines in 2021-22, rising to 1.1 million in 2022-23, and another 1.1M in 2023-24 tax year, representing one in 11 of those expected to file.<\/p>\n The firm stressed that missing the payment deadlines carries an instant \u00a3100 penalty from HMRC<\/a>, but this escalates the longer you continue without paying.<\/p>\n For being three months late, the fee is \u00a310 a day for \u00a390 days, or up to \u00a3900, added to the existing \u00a3100 penalty. For being six months late, the fee is 5% of the tax due or \u00a3300, whichever is more, on top of the two previous fines.<\/p>\n And for paying 12 months late, the fine is the same as six months added on again, Updraft says, taking the total in fines for late payment to over \u00a31,600.<\/p>\n Updraft told the Express: \u201cSearch data collected by Updraft suggests growing confusion and concern: more than 14K people searched for \u201cHMRC<\/a> penalty\u201d in the past month, which is a 13% increase year-on-year, and up 12% just in the last week. The stats are an indication that thousands are scrambling to understand what happens if they miss HMRC<\/a>\u2019s tax deadlines.<\/p>\n \u201cYet despite this surge in interest, the reality is that many people are still missing critical dates altogether. According to HM Revenue and Customs (HMRC<\/a>), an estimated 1.1 million people missed the filing deadline for their annual Self Assessment tax return in the last two tax years. That means over a million taxpayers risked at least \u00a3100 in penalties just for being late.\u201d<\/p>\n Aseem Munshi, Founder of Updraft<\/a>, experts in helping people pay off credit card debt and build confidence with their consumer credit, explains: \u201cIt\u2019s not just penalties that hit late taxpayers, but interest charges can quietly cost even more over time. Since 2020, HMRC<\/a> has charged a staggering \u00a3513 million in interest on the late payment of income tax. That\u2019s money paid not in tax owed, but simply for missing deadlines.<\/p>\n \u201cFor self-employed individuals, these interest charges can add up quickly, especially if deadlines like the 31 July payment on account are missed and not addressed for months. Currently, HMRC<\/a>\u2019s interest rate<\/a> on late payments is 7.75% per annum.<\/p>\n