Penalties for late submission of self assessment tax returns
If you do not submit your tax return on time or pay the tax you owe, there are several penalties, interest, and surcharges that you may be subject to.
- If you file your tax return late, you will be charged a fixed penalty of £100. This penalty applies even if you have no tax to pay or if you have paid the tax you owe on time.
- If you continue to file your tax return late, additional daily penalties may apply, starting at £10 per day for up to 90 days.
- If you fail to file your tax return and pay the tax you owe, you may be subject to additional penalties of up to 100% of the tax due.
- If you owe tax and do not pay on time, interest will be charged on the unpaid amount at a rate set by HMRC. This interest is calculated from the original due date until the date the tax is paid.
- If you file your tax return late and have a balancing payment due, you may be subject to a 5% surcharge on the unpaid tax.
- If you file your tax return late and have a balancing payment due for a second time within 12 months, you may be subject to a further 5% surcharge on the unpaid tax.
It is important to note that these penalties, interest, and surcharges are in addition to the tax you owe and can quickly add up. To avoid these penalties and surcharges, it is crucial to file your tax return on time and pay any taxes owed in a timely manner. If you are unable to do so, you should contact HMRC as soon as possible to discuss your options and make arrangements to pay.