The self-assessment tax deadline is now just three days away, and missing it could prove costly for taxpayers. With HMRC cracking down on late payments, the interest charged on unpaid tax is set to rise significantly from 6 April 2025.

Interest on Unpaid Tax Set to Rise

With HMRC cracking down on late payments, the interest charged on unpaid tax is set to rise significantly from 6 April 2025, increasing by 1.5 percentage points above the Bank Rate plus 2.5%. While this change isn’t immediate, it highlights how costly delays can become, making it more important than ever to file on time. The decision has already been criticised as a “cash grab” by some experts, raising ethical concerns about whether it’s fair to target taxpayers with higher costs without offering additional safeguards. Interest on late payments isn’t subject to legal protections like penalties are, meaning taxpayers will have little recourse once the charges are applied. This underscores the urgency of getting your return filed now to avoid unnecessary financial strain.

Taxpayers must also be mindful of potential errors that can result in costly mistakes. Forgetting to include additional income streams such as rental profits, dividends, or self-employment earnings is a common issue, as is misreporting figures for allowable expenses. Filing an inaccurate return can result in an inquiry from HMRC, adding further stress and potentially more penalties. Preparing now ensures you have all the right paperwork to hand, such as income records, P60s or P45s, and receipts for allowable expenses. Taking the time to double-check your calculations and ensuring accuracy is key to avoiding further complications after the deadline has passed.

The Importance of Timely Filing

At The Tax Faculty, we understand that the self-assessment process can feel overwhelming, especially with the deadline looming. There’s still time to ensure your return is accurate and submitted on time. Our expert team is on hand to guide you through the process, offering a free consultation to discuss your requirements and filing needs. Don’t let the pressure of the deadline or future interest hikes catch you out—reach out to us today and let us help you meet the deadline with confidence.

Contact The Tax Faculty today for professional advice and support with your self-assessment tax return.

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Capital Gains Tax Expertise: The Tax Faculty LLP Managing Partner Charles Tateson Named UK Capital Gains Tax Advisor of the Year 2023

The Finance Monthly Taxation Awards recognises the achievements of tax professionals from around the globe.

Winning such an award is no small feat. It is a reflection of hard work, extensive knowledge, and an ability to navigate the intricacies of the UK tax system.

Read more about Charles and the award here.

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