Avoid £100 penalty and meet key HMRC January deadline | Personal Finance | Finance

New data from HM Revenue and Customs (HMRC) reveals that 342 people spent the final hour of 2025 filing their tax return. As the January 31 deadline looms, a total of 54,053 people welcomed 2026 by submitting their 2024/25 tax return over New Year’s Eve and New Year’s Day.

The busiest period over these two days was between 11.00am and 11.59am on December 31, with 3,927 people filing their returns. So far, more than 6.36 million people have submitted their tax returns, while nearly 5.65 million still need to complete their self-assessment forms before the HMRC deadline.

Those who fail to meet the deadline could face an initial late filing penalty of £100, with potential for further penalties. This £100 fixed penalty applies even if no tax is due or if the tax is paid on time.

Penalties for late tax returns are:

• An initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
• After 3 months, additional daily penalties of £10 per day, up to a maximum of £900
• After 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
• After 12 months, another 5% or £300 charge, whichever is greater

Additional penalties for late payments include charges of 5 per cent of the unpaid tax at 30 days, 6 months and 12 months. If tax remains unpaid after the deadline, interest will also be charged on the amount owed, in addition to the penalties above.

People who complete a Self Assessment tax return to pay the High Interest Child Benefit Charge (HICBC) can opt out and choose to pay it through their tax code via the new PAYE digital service, according to the Daily Record.

Winter Fuel Payments and Pension Age Winter Heating Payment

Pensioners are not required to declare their 2025 Winter Fuel Payment, or Pension Age Winter Heating payment in Scotland, within their tax return for the 2024 to 2025 tax year, as these payments will be addressed in the 2025 to 2026 tax return, which must be submitted by January 31, 2027.

Myrtle Lloyd, HMRC’s chief customer officer, said: «New Year is a great time to start afresh. What better way than to ensure your tax affairs are in order for another year than completing your tax return. If you have yet to start, the clock is ticking, go to GOV.UK and start today.»

Comprehensive online assistance and guidance is accessible through GOV.UK to support people in completing and submitting their tax returns. HMRC explained that taxpayers can begin their tax return, save their progress, and return to it multiple times before submitting it.

After submission, whilst the outstanding amount doesn’t require immediate settlement, it must be cleared before the January 31 deadline, according to the tax authority. People can set up alerts through the HMRC app to stay informed about payment due dates and avoid missing crucial deadlines.

Those unable to meet the deadline are encouraged to contact HMRC prior to January 31, with the revenue body committing to fair treatment for those presenting reasonable justifications.

Fraudsters may exploit the deadline period by distributing counterfeit communications claiming to originate from HMRC. The tax authority warned that login credentials should never be disclosed to third parties.

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