Late Filing and Late Payment Penalties (Self-Assessment)

As the tax deadline has now passed, we thought we’d temporarily turn our attention to late filing and late payment penalties.

Late Tax Return Submission

There is a basic £100 charge for missing the tax return submission deadline of 31st January. If the return is submitted between February-April, this would be the whole late submission penalty. However, if the return is submitted between three and six months late (May-July), there would be an extra penalty of £10 per day, up to a maximum of 90 days. There are further penalties due if the return is submitted over six months late. Please also note that penalties are also subject to interest which can see the overall amounts owed to HMRC increasing by the day. If you find yourself in this position, please contact Matthews Hanton to find out more and to see if we can help you get back on track. 

Late Tax Payment

If you are late paying your tax payment (either the January or July payment), but pay within 30 days of the payment deadline, only interest would be charged on the late payment. However, if the payment is over 30 days late, a penalty charge of 5% of the total tax due would also be levied. If the payment is made 6 months late and then 12 months late, a further penalty charge of another 5% of the total tax due would be levied. As above, please also note that penalties are also subject to interest. Again, if you find yourself in this position, please contact Matthews Hanton to find out more and to see if we can help you get back on track.

Please note that HMRC can make “time to pay” arrangements, which can see penalties suspended as long as the agreements are adhered to. HMRC can also override the statutory penalties at it’s discretion, depending on the circumstances. For this reason, it is always worth communicating with HMRC, to ensure that your penalty situation is managed as well as possible.