Martin Lewis has issued an urgent warning to millions of people who may not be able to get their tax returns done on time by today's deadline.
According to HM Revenue and Customs (HMRC), nearly 8.7 million taxpayers have already filed their tax returns. If those due to file their tax return have not done so by today, they will face an initial fine of £100 which could be followed by further penalties.
Additional penalties can also be enforced for paying late of 5 per cent of the tax unpaid at 30 days, six months, and 12 months. Appearing on ITV's This Morning Show, Mr Lewis answered a viewer's question who stated they would be unable to finish their tax return by today's deadline.
Read more: When is the first DWP Cost of Living payment in 2023?
In response, Mr Lewis said: "The self-assessment deadline is today and the rule is pretty simple if you're asked to do self-assessment you have to do it. Usually it's people who are higher earners or have more complicated tax affairs - but the rule is if you're asked to do it you have to do it.
"Now, if you miss today's deadline you are usually given a £100 fine. If you had a really good reason why you couldn't do it for example you had been in hospital or your partner might have done, you can get in touch with them and you can discuss that reason.
"But, if it's just you've forgotten then no - actually more important than the £100 fine is there are two separate things that are happening today, the £100 fine for not filing your tax return and also you're, in most cases, meant to be paying your tax today.
"If you haven't done that then take a guess of roughly what you should be paying and pay that because that would reduce the interest when, if you don't get to it in time, the penalties later. If you miss today, there is another fine in 30 days so the real key is if it's not going to happen today, make a payment of an estimated amount if you can...the £100 you're probably going to have to cope with that fine but make sure you get your tax return done in the next 29 days or that's when the next fine happens."
According to HMRC, the 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
Read next:
'We're swapping our 3-bed home for 65ft narrowboat - people think we're crazy'
'We took a punt and bought a derelict farmhouse... now it's our dream home'
The multi-million pound Greater Manchester mansions that are plummeting in price
'My £49,000 deposit wouldn't go far in London - so I found my perfect loft apartment in Manchester'
