Late Self Assessment Tax Return: Penalties & What to Do

Late Self Assessment Tax Return: Penalties, Fines & What to Do

Missing the Self Assessment tax return deadline can happen more easily than you think, especially if you are unsure whether you need to file or, filing for the first time.

Unfortunately, HMRC penalties apply automatically once the deadline has passed. The good news is that there are steps you can take to limit the damage and get back on track.

What Is the Self Assessment Deadline?

For most taxpayers, the key deadline is 31 January. By this date, you must:

• – Submit your online Self Assessment tax return
• – Pay any tax owed for the previous tax year

If either of these is late, penalties and interest may apply.

What Happens If You File Your Tax Return Late?

HMRC issues penalties based on how late your tax return is. These can add up quickly.

1. £100 Automatic Late Filing Penalty

If your tax return is submitted after 31 January, you will receive an automatic £100 penalty, even if you have no tax to pay or have already paid your tax.

2. Daily Penalties After 3 Months

If your return is more than three months late, HMRC can charge £10 per day for up to 90 days. This results to a maximum of £900 in daily penalties.

3. Six-Month Penalties

If your return is six months late, you may face an additional penalty of £300 or 5% of the tax due. This is normally based on whichever is higher.

4. Twelve-Month Penalties

If your return is 12 months late, further penalties apply in the form of another £300 charge or 5% of the tax due.

In serious cases, penalties can be higher.

What About Late Payment Penalties and Interest?

If you submit your tax return on time but pay late, HMRC will charge interest on the outstanding tax and issue late payment penalties if the amount remains unpaid. HMRC will issue late payment penalties of 5% of the tax unpaid at: 

• – 30 days 
• – 6 months 
• – 12 months 

What Should I Do If I’ve Missed the Deadline?

If you have missed the self assessment deadline, it is important to act quickly and submit your return as soon as possible. The sooner your return is filed, the fewer penalties you will face.

Seeking professional help can help simplify the process and help you correct your tax position. An accountant can work to submit your return quickly and correctly, check whether penalties are correct and communicate with HMRC on your behalf.

Can Penalties Be Appealed?

In some cases, HMRC may cancel penalties if you have a reasonable excuse, such as serious illness, bereavement, or technical issues with HMRC systems which prevented you from filing on time. All Appeals must be submitted promptly and supported with evidence.

Need Help with a Late Tax Return?

Late Self Assessment tax return? If your tax return is late, getting help now can make a substantial difference. Our accountancy team are here to help submit your Self Assessment tax return, help minimise penalties and interest and deal with HMRC on your behalf.