Early Bird Offer - Get Your Personal Tax Return Filed for Just £99 onward – Quick, Easy, and Hassle-Free Service! Get Offer

Penalties and Fines: How Late Tax Returns Affect You in the UK

Home Blog / Penalties and Fines: How Late Tax Returns Affect You in the UK
Penalties and Fines: How Late Tax Returns Affect You in the UK

Penalties and Fines: How Late Tax Returns Affect You in the UK

Understanding the UK Tax Return Deadline

In the UK, the Self Assessment Personal Tax Return applies to individuals who earn income outside of PAYE, such as the self-employed, landlords, or investors.
The key deadlines are:

  • 31st October – for paper tax returns

  • 31st January – for online submissions

These dates also mark the deadline for paying any tax you owe. Missing either can result in automatic penalties.

The Cost of Filing Late

HMRC imposes a structured penalty system for late submissions:

  1. 1 Day Late:

    • A fixed £100 fine, even if you don’t owe any tax.

  2. 3 Months Late:

    • An additional £10 per day (up to a maximum of £900).

  3. 6 Months Late:

    • An extra penalty of £300 or 5% of the tax due—whichever is higher.

  4. 12 Months Late:

    • Another £300 or 5% fine may be added, and in serious cases, HMRC can charge up to 100% of the tax owed.

These fines can quickly snowball, turning a small oversight into a significant financial burden.

Interest and Surcharges on Late Payments

In addition to penalties, HMRC charges daily interest on unpaid tax from the due date until it’s fully paid.
If you still haven’t paid your balance 30 days after the due date, a 5% surcharge applies, with additional 5% charges at 6 and 12 months.

This means that even a small delay can cost you more than expected.

How to Avoid Late Filing Penalties

Avoiding penalties starts with proper planning and expert advice. Here’s how Payless Accountants helps clients stay on track:

  • Timely reminders about upcoming filing dates

  • Accurate tax calculations to avoid underpayment

  • Online filing support through HMRC’s digital system

  • Professional review of income and expenses to claim all eligible deductions

  • Representation and appeal support in case you receive a penalty notice

Our team ensures your Personal Tax Return is prepared and submitted on time, giving you peace of mind and protecting you from costly mistakes.

Can You Appeal a Penalty?

Yes — if you have a reasonable excuse, such as illness, bereavement, or HMRC system failures, you can appeal. Payless Accountants can help you draft and submit an appeal with proper evidence to improve your chances of success.

Final Thoughts

Late tax filing doesn’t just bring penalties—it can also damage your financial reputation and create unnecessary stress. By partnering with Payless Accountants, you ensure your Personal Tax Return is handled efficiently, accurately, and always on time.

Disclaimer:

This article is for general informational purposes only and should not be considered financial or legal advice. For personalised tax guidance, please contact Payless Accountants directly.