Tax Return Late Filing & Late Payment Penalties

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Tax Return Late Filing & Late Payment Penalties

If you receive a tax return, you are legally obliged to complete it, even if you think it is not relevant to you. If you do not complete and submit the tax return you will be fined. HMRC may also issue a bill for estimated tax due.

You must file your tax return with HMRC by 31 January following the tax year end date of 5 April. For example, the 2018 tax return (for the tax year 2017-2018) is due by 31 January 2019. You will be sent your tax return around May after the end of the tax year.

What happens if I submit my tax return late?

There are penalties for late filing:

  • You will be charged a penalty even if you do not owe any tax.
  • If you miss the filing dates of 31 October (for paper returns) or 31 January (online submission), you will be charged a penalty of £100.
  • If you are three months late, you will be charged an automatic daily penalty of £10 per day, up to a maximum of £900.
  • If you are six months late there will be a penalty of £300 (or 5% of the tax owing if this is greater).
  • If you are 12 months late, you will be charged another £300 (or 5% of the tax owing if this is greater). In exceptional circumstances a higher penalty of up to 100% of the tax due is possible.

The are also penalties are late payment are:

  • 5% of tax unpaid after 30 days
  • Another 5% of tax unpaid after 6 months
  • Another 5% of tax unpaid after 12 months

The penalties can result in a substantial amount of money so it is essential that you complete and submit your tax return and pay any tax due on time.