What Happens If You File Your Tax Return Late?

If your self assessment tax return is late, HMRC applies an automatic penalty, even if you do not owe any tax. It is a stressful place to be but it is also completely fixable and the sooner that you act, the less it tends to cost.

The penalties in brief

At the time of writing, an automatic £100 fixed penalty applies as soon as the 31 January deadline passes, whether or not there is any tax to pay. If the return is still outstanding three months later, daily penalties of £10 a day kick in for up to 90 days, a further £900. At six months and again at twelve months, HMRC adds a penalty of 5% of the tax due or £300, whichever is higher.

Late payment is charged separately from late filing. Interest runs on any unpaid tax from the due date, and further charges apply the longer the balance sits unpaid. HMRC updates these amounts and rates from time to time, so we always confirm the current position for your specific year before advising you.

What to do if you are late

Do not ignore it. The longer a return sits unfiled, the more the penalties and interest build up. Getting the return filed, even after the deadline, stops the position getting any worse and gives you a clear picture of what you actually owe.

If you have a genuine reason for missing the deadline, illness, bereavement or something similar, HMRC will consider an appeal, but the return still needs filing first.

No judgement, just help

Plenty of people end up here for entirely ordinary reasons, a busy year, a change in circumstances or simply not knowing where to start. We are not interested in how you got here, only in getting you sorted as quickly as possible.

Get back on track

If your tax return is overdue, get in touch today and we will help you file it and understand exactly where you stand. We work with sole traders and small businesses across Baildon, Shipley, Leeds and the wider Yorkshire area.