1 in 11  Brits missed HMRC deadline in January with penalties up to £1.6k, don’t join them next week

Self-employed workers across the UK are running out of time to make their second Payment on Account to HMRC, due by midnight on 31st July 2025. This affects anyone who files a Self Assessment tax return and had a tax bill of over £1,000 for the last tax year.

When 1.1 million people miss a tax deadline – which is 1 in 11 of the people expected to file – it suggests many Brits still may not realise how quickly fines can mount and how easily they can be avoided.
With millions of taxpayers due to make this payment, Updraft is warning that missing the 31 July deadline could lead to rapidly escalating penalties and shares resources to help people avoid them.

Missed deadlines remain stubbornly high each year

The number of people missing HMRC’s Self Assessment deadline has remained alarmingly high and it’s getting worse:

• 2021/22 tax year: 600,000 people missed the deadline [1] or 4.97% of the total expected.

• 2022/23 tax year: 1.1 million missed the deadline [2] or 9.02% of the total.

• 2023/24 tax year: 1.1 million again [3] or 9.15% of the total.

That’s an increasing number of people missing their annual filing deadline in the past two years, despite growing awareness efforts and the financial risk of penalties starting at £100 and climbing over time.

Brits to be charged at least £100 for missing the deadline

Miss the 31 July deadline and you’ll face a £100 penalty, rising to £1,600+ if you delay payment for a year. Updraft have shared how the penalties escalate:

Searches for ‘HMRC penalty’ are up 13% YoY as worry grows

Search data collected by Updraft suggests growing confusion and concern: more than 14K people searched for “HMRC penalty” in the past month, which is a 13% increase year-on-year, and up 12% just in the last week. The stats are an indication that thousands are scrambling to understand what happens if they miss HMRC’s tax deadlines.

Yet despite this surge in interest, the reality is that many people are still missing critical dates altogether. According to HM Revenue and Customs (HMRC), an estimated 1.1 million people missed the filing deadline for their annual Self Assessment tax return in the last two tax years. That means over a million taxpayers risked at least £100 in penalties just for being late.

Over half a billion in interest: The hidden cost of missing HMRC deadlines

Aseem Munshi, Our founder at Updraft, experts in helping people pay off credit card debt and build confidence with their consumer credit, explains:

“It’s not just penalties that hit late taxpayers, but interest charges can quietly cost even more over time. Since 2020, HMRC has charged a staggering £513 million in interest [4] on the late payment of income tax. That’s money paid not in tax owed, but simply for missing deadlines.

“For self-employed individuals, these interest charges can add up quickly, especially if deadlines like the 31 July payment on account are missed and not addressed for months. Currently, HMRC’s interest rate on late payments is 7.75% per annum.”

“When people think about missing a tax deadline, they may often worry about the £100 fine but forget interest charges. That’s what really drains finances over time. The £513 million HMRC has collected in interest shows just how many people are paying extra simply because they may not have been aware of the penalties and interest.”

How to avoid HMRC’s 31 July penalty

Missing HMRC’s 31 July deadline can result in penalties and interest charges, but there are steps people can take to understand their options. Aseem explains:

Check your tax account
“You can log into your personal HMRC online account or use the HMRC app to see if a second payment on account is due.”

Make the payment by the deadline
“Payments made before midnight on 31 July 2025 avoid the £100 late payment penalty.
Payments can be made online using a bank card, bank transfer, or through a direct debit setup.”

If you’re unable to pay in full
“HMRC offers a “Time to Pay” arrangement in some cases, allowing eligible taxpayers to spread payments over time. Contact HMRC directly to see if this is an option for you.”

For more on managing credit and borrowing, head to updraft.com

Source & methodology:
Based on official HMRC press releases, available at gov.uk/self-assessment, the percentage of taxpayers who missed each year’s filing deadline were calculated.

About Updraft:
Updraft is an FCA authorised lender. We provide personal loans to try and help customers manage existing credit commitments, subject to credit and affordability checks.