According to HMRC, over 11.7 million filed their tax returns before the 31 January 2023 deadline. Although, 600,000 still missed the deadline.

HMRC expected approximately 12.1 million tax returns to be filed on time for the 2021/22 tax year. However, only 11.4 million of these were submitted on time. Additionally, they received 0.3 million unsolicited returns and late registrations.

• At midnight on the 31st January 2023, 600,000 tax returns were still due.
• 800,000 taxpayers filed on the day of the deadline.
• 36,000 filed their tax return within the last hour.

Despite this, it is a dramatic improvement from last year, when over 2 million taxpayers missed the 31 January 2022 tax return deadline. However, HMRC allowed a filing extension until 28 February 2022 without a late filing penalty due to COVID-19.

Disregarding the two years affected by the pandemic, the 94.5% of tax returns filed on time in 2023 shows an improvement from the 92% filed on time in 2020. Similarly to previous years, 96% of tax returns were submitted online.

Any tax returns that remain unsubmitted, daily penalties will begin if a return hasn't been filed online by 1 May 2023.

Those that haven't paid their tax by 31 January 2023 will already be incurring late payment interest. Taxpayers struggling to settle their unpaid tax could arrange a payment plan or a budget payment plan with HMRC. Late payment interest will continue to apply to the remaining balance.

The next penalty deadline is 2nd March 2023. This is when a 5% tax-geared penalty may apply on any unpaid tax (excluding payments on account). This does not apply if you have arranged and agreed a payment plan with HMRC.

Article by ICAEW