As of today, around eight million people have filed their self assessment return for 2016 to 2017. HMRC is reminding taxpayers that if they send their tax return late, they will receive a £100 penalty - even if they do not owe any tax.

Angela MacDonald, HMRC director general of customer services, said: ‘The seven-day countdown to 31 January has now begun. Put a stop to that niggling feeling and do your self assessment now. Our helpful online services offer support and advice, so you can complete your tax return quicker than you think.’

Anyone submitting their 2016 to 2017 self assessment return online for the first time will need to register for the self assessment online service.  HMRC advises it can take a few days for the registration to arrive in the post, so it is important for individuals to act quickly, and to let HMRC know if they think they will not be able to meet the 31 January cut off.

Self assessment customers can now also submit their return through their personal tax account. HMRC advises it takes five minutes to sign up for a personal tax account.

However, earlier this month, HMRC admitted it had been experiencing IT problems with the self assessment pre population service. While these are now resolved, there remain some issues with setting up direct debit payments.

The penalties for late tax returns are initial £100 fixed penalty, which applies even if there is no tax to pay or if the tax due is paid on time. After three months, there are additional daily penalties of £10 per day, up to a maximum of £900.

After six months, there is a further penalty of 5% of the tax due, or £300, whichever is greater, and after 12 months, another 5% or £300 charge, whichever is greater.

There are additional penalties for paying late of 5% of the tax unpaid at 30 days, six months and 12 months.

Report by Pat Sweet