HMRC has sent out a stark warning that its data shows that 3.8 million of people have so far failed to send in their self-assessment returns before the January 31st deadline, and many thousands are understood to be private landlords.

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HMRC states it is expecting 12.1m plus tax returns to be filed for 2022/23 tax year along with payments for the owed tax.

Penalties for not sending in tax returns by the deadline is an initial £100 fixed penalty even if tax is not owed.

Additional daily penalties of £10 per day will be imposed after three months with a maximum of £900 and after six months a further late tax penalty of 5 per cent of the tax due or £300 dependent on whichever is the highest.

After 12 months, HMRC will add another 5 per cent or £300 will be charged and again the largest sum will be taken.

HMRC will take into account customer’s reasons for being unable to meet the deadline with those who provide bona-fide reasons may not have to pay a penalty.

However there are other additional penalties for late tax payments which are 5 per cent of tax unpaid at 30 days, six months and 12 months.

Interest will also be charged on late payments.

An HMRC spokesperson says: “If you are a Self-Assessment taxpayer, now is the time to take action and get your return done. People can familiarise themselves with the process by checking out HMRC … on GOV.UK. Once a tax return is submitted, it’s easy to find out what’s owed and to pay online or using the HMRC app. Just search ‘pay my Self-Assessment’ on GOV.UK to find out more.”

For those who have problems in paying their tax in full, HMRC says it will help to put together a Time To Pay agreement payment.