HMRC has started issuing daily penalties of £10 for anyone who missed the January deadline for their Self Assessment tax return. Under HMRC rules, a penalty applies if you need to submit a tax return and you file it late or pay your tax bill after the due date.
Late Filing Penalties Explained
If you file your tax return late, you will incur an initial fixed penalty of £100. After three months, additional daily penalties of £10 per day are applied, up to a maximum of £900. After six months, a further penalty of 5% of the tax due or £300 (whichever is greater) is charged. After twelve months, another 5% or £300 penalty (whichever is greater) is added.
Late Payment Penalties
If you pay your tax bill late, you will face penalties of 5% of the unpaid tax at 30 days, six months, and twelve months. Interest is also charged on the amount owed. To avoid these charges, pay your Self Assessment tax bill as soon as possible.
Failure to Notify Penalty
If you register after 5 October and do not pay all of your tax bill by 31 January, you may receive a ‘failure to notify’ penalty. This penalty is based on the amount still outstanding and will be issued within 12 months after HMRC receives your tax return.
Key Deadlines
You must tell HMRC by 5 October if you need to complete a tax return for the previous tax year and you have either not sent a return before or did not need to send one for the 2024 to 2025 tax year. You can notify HMRC by registering for Self Assessment.
HMRC states: “The last tax year started on 6 April 2025 and ended on 5 April 2026. The deadline for earlier tax returns has passed and you may have to pay a penalty. Send your tax return or payment as soon as possible to avoid further penalties.”
How to Avoid Penalties
To avoid penalties, ensure you submit your tax return and pay any tax owed by the deadline. If you do not know your profit for the whole tax year, you still need to send a tax return. Pay within 30 days of the date on the penalty notice to stop further charges.
