HMRC Waives £100 Fines for Late Tax Filers on New Year’s Eve

The HM Revenue and Customs (HMRC) has decided to waive fines for over 300 individuals who submitted their self-assessment tax returns just before the end of 2025. According to HMRC figures, a total of 342 people filed their returns in the last hour of the year, narrowly avoiding the typical £100 late filing penalty.

During the New Year’s Eve and New Year’s Day period, a total of 4,053 individuals completed their tax returns. The peak filing time was between 11:00 and 11:59 on December 31, with 3,927 submissions recorded, reflecting a rush to meet the deadline.

Understanding the Penalties for Late Filings

Individuals who miss the tax return deadline typically face an initial penalty of £100, regardless of whether they owe tax or have made timely payments. If not filed on time, additional penalties can accrue. After three months, daily penalties of £10 can be levied, accumulating up to a maximum of £900. Following six months, a further penalty of 5% of the tax due or £300, whichever is greater, applies. A similar charge occurs after 12 months as well.

Sarah Coles, head of personal finance at Hargreaves Lansdown, emphasized the importance of timely submissions, especially for those who may have difficulty gathering financial information post-holiday season. “If you spent ages digging out details of interest payments, dividends, or profits on share sales, consider consolidating to simplify things,” she advised.

To avoid penalties, individuals are encouraged to submit their self-assessment tax returns as soon as possible. This recommendation is particularly pertinent for partnerships, where all partners face penalties if a partnership tax return is late.

Consequences of Late Payments

In addition to late filing penalties, individuals will also incur interest on any unpaid tax amounts. Payments must be made within 30 days of the date on the penalty notice to prevent further charges. Households are reminded to take proactive measures in managing their tax affairs, especially after the festive season when financial records may be disorganized.

In light of this recent decision by HMRC, many individuals may find relief in knowing that they can avoid fines and focus on ensuring their tax returns are accurately submitted in the future.