Millions still haven't filed their taxes as deadline approaches.
Millions risk £100 fine if they don't file their tax returns
Millions of people must file their tax returns online by midnight, meaning they could face a £100 fine, HMRC has warned.
More than three million people facing a penalty are being urged to go online for help and advice and use the app to pay any outstanding tax once their return is submitted.
For the first time, online platforms such as eBay and Vinted must report sales information to HMRC for people who sell 30 or more items or earn at least £1,700.
The authority will assess this information against individual tax returns.
If the midnight deadline is missed, an initial fixed penalty of £100 is imposed, which applies even if there is no tax to pay. "The reasons given by customers for not paying their tax bill or agreeing to a payment plan on time will be considered on an individual basis," said Myrtle Lloyd, HMRC's director of customer services.
After three months of not paying tax, additional daily penalties of £10 per day will apply, up to a maximum of £900, with further penalties after six months and a year, including additional interest.
Around 8.6 million people have already filed their taxes for 2023-24, including small businesses and people with additional income outside of their work.
Accountant Benedicta Egbeme, founder of BeniRatio Finance, told the BBC that people should complete a self-assessment form if their self-employment income is more than £1,000, and for hobbies and side hustles such as eBay and Vinted.
Companies like these are now required to share sales data and personal information of sellers. The rules, which came into force in January, do not mean there is a new tax burden on these sellers, just that more information has been shared to ensure they pay the correct amount of tax.
"We could not be clearer - if you are not trading and occasionally sell unwanted items online - there is no tax to pay," HMRC said.
"As has always been the case, some people who trade through websites or sell services online may need to pay tax and register for self-assessment."
Those most likely to be affected are people who buy goods to resell or produce goods with the intention of selling them for a profit, or provide a service such as being a delivery person or renting out a holiday home.
HMRC denies the "deliberately poor" telephone service.
'Fear'
"Taxation in general can be quite a daunting subject," Ms Egbeme told the BBC.
But she said that while the UK tax system is "complex and daunting", people should not "bury their heads in the sand" for fear of getting caught up in the system. Ms Egbeme said reasonable excuses for not submitting on time included: being lost, ill/sick, being hospitalised or facing a life-threatening illness.
Other reasons that will be considered are software failures, problems with your home computer, HMRC online services and "destruction of goods, files, documents by fire, flood or theft".
She said appeals against the fine could be made either by filling in a form or by writing a letter to HMRC - but a statement must be provided.
"In fact, HMRC will not consider claims until your tax return has been filed and payment has been made," Ms Egbeme said.
HMRC is also warning customers to be aware of the risk of falling victim to scams which can increase during tax deadlines and that people should never share their HMRC login details with anyone. HMRC recently denied running a "deliberately poor" telephone service in an attempt to encourage taxpayers to seek help online.
Chief executive Jim Harra said claims by an MPs' committee about customer service were "completely unfounded".
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