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HM Revenue and Customs (HMRC) will begin issuing daily fines to UK households from May as a penalty for filing Self Assessment tax returns late. An initial £100 fixed penalty is given if you failed to send your tax return by the January 31 deadline earlier this year, and further fines will now follow if you still haven't submitted it.

But from May - three months after the initial January 31 filing deadline - HMRC will now begin issuing additional daily penalties, up to a maximum of £900. All Self Assessment tax returns for the 2024 to 2025 tax year must have been filed and paid by 11.59pm on January 31, 2026, and according to HMRC, 11.48 million people filed their tax return on time, with 475,722 taxpayers waiting until the final day to submit their return.

Anyone who missed the deadline must pay a £100 fixed penalty - even if they had no tax to pay, or if any tax due was paid on time - but the penalties continue to increase the longer you leave it, with taxpayers now facing daily penalties from May.

The daily penalties begin three months after the January 31 deadline (so from May 1), at a cost of £10 per day and can reach up to a maximum of £900.

The penalty fee will then increase again after six months, with a further penalty of 5% of the tax due, or £300 - whichever is higher. After 12 months, another 5% - or £300 - will be added.

If you pay your tax late, you'll also get penalties of 5% of the tax unpaid at 30 days, six months and 12 months. If tax remains unpaid after the deadline, interest will also be charged on the amount owed in addition to the penalties above.

Speaking after the submission deadline in January, Myrtle Lloyd, HMRC's Chief Customer Officer, said: "Thank you to the millions of people and agents who filed their Self Assessment tax return and paid any tax owed by 31 January.

"Anyone who missed the deadline should file their return as soon as possible, as penalties and late payment interest may be charged.

"HMRC digital channels are always the quickest and easiest way for people to sort their tax affairs. Search 'Self Assessment' on GOV.UK to find out more."

HMRC says penalties must be paid within 30 days of the date on the penalty notice and you'll be charged interest if you pay after the deadline.

If the payment deadline falls on a weekend or Bank Holiday, make sure your payment reaches HMRC on the last working day before it, unless you're paying by Faster Payments.

Two bank holidays fall in May, on Monday 4 and Monday 25, so if you are given a payment deadline that falls on these dates, you will need to make sure it gets to HMRC on either Friday 1 or Friday 22 instead.

You can pay your penalty through your online bank account, by bank transfer, direct debit, at your bank or building society, or via a cheque through the post.

Reasons for not paying your tax bill, or arranging a payment plan, by the January 31 deadline will be considered individually and only those who provide a reasonable excuse may avoid a penalty, while those without will face a fine. HMRC says a reasonable excuse can include any of the following:

• your partner or another close relative died shortly before the tax return or payment deadline

• you had an unexpected stay in hospital that prevented you from dealing with your tax affairs

• you had a serious or life-threatening illness

• your computer or software failed just before or while you were preparing your online return

• service issues with HMRC online services

• a fire, flood or theft prevented you from completing your tax return

• postal delays that you could not have predicted

• delays related to a disability or mental illness you have

• you were unaware of or misunderstood your legal obligation

• you relied on someone else to send your return and they did not

You must send your tax return or payment as soon as possible after your reasonable excuse is resolved and you cannot blame a cheque being bounced or a failed payment for missing the deadline, or say you submitted it late because HMRC didn't send you a reminder.