Late filing penalties - Personal tax

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Table of Contents

Introduction: Late filing penalties – Personal Tax

Find below the following Frequently asked question;

  • What are types of late filing penalties?
  • What are late filing penalties for personal tax return?
  • What are the late payment penalties for personal tax return?
  • What is the interest for paying personal tax late?
  • What are the tips for reducing late filing penalties? 

What are types of late filing penalties?

There are 3 types of late filing penalties;

  1. Penalty for filing (submitting) late
  2. Penalty for paying your tax bill late
  3. Interest for paying your tax bill late 

What are late filing penalties for personal tax return?

Find below HMRC late filing penalties. Technically, there can be unlimited penalties based on the tax bill though.  

How latePenalty
Between 1 day & 3 months £100 flat fine
Between 3 months & 6 months Above plus £10 each day
Between 6 months & 12 months All Above plus £300 flat or 5% of your tax bill (whichever is greater)
Over 12 months All Above plus £300 flat or 5% of your tax bill (whichever is greater)

What are the late payment penalties for personal tax return?

Regardless of the timely filing of your return, if you miss the payment deadline, you will have to pay additional penalties as follows;

How late paymentLate payment Penalty
Between 1 day & 30 days Nil
Between 30 days & 6 months 5% of tax bill
Between 6 months & 12 months another 5%
Over 12 months and another 5%

What is the interest for paying personal tax late?

If you pay your tax bill late, HMRC will calculate the interest as follows and add it to your late payment penalties. 

Period in which payment was lateInterest rate (Annual)
Since 21 August 2018 3.25%
21 November 2017 – 20 August 2018 3%
23 August 2016 – 20 November 2017 2.75%
29 September 2009 – 22 August 2016 3%

What are the tips for reducing late filing penalties?

  • If you have a reasonable excuse for filing your tax return late or paying late, you can appeal against some penalties. 
  • As can be seen above, certain late filing penalties are on daily bases and certain penalties move to the higher percentage bracket after set months. You should therefore file your tax return as soon as you practically can, to avoid the penalties from adding up. 
  • If for any reason, you can not afford to pay your tax bill on time, you can get in touch with HMRC and agree a payment plan

Our service to you

If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We are pro-active and easily accessible accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.

Related Blogs:

Get further information from the following blogs;

Self Assessment Payment plan

Changes to Self Employed Grant

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