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Missed the tax return deadline? Penalties and how to limit them

Self Assessment · Penalties

Missed the tax return deadline? Penalties and how to limit them

Missing the Self Assessment deadline happens to thousands of people every year. It’s stressful, but it’s fixable, and acting quickly makes a real difference to what you pay.

AABy Asim AbbasUpdated 11 November 20264 min read
Planning board for a late Self Assessment tax return
In 30 seconds
  • The first penalty is £100, even if you owe no tax
  • Daily penalties of £10 start after three months
  • Paying late adds 5% penalties plus interest
  • You can appeal within 30 days if you had a reasonable excuse

HMRC charges separate penalties for filing late and paying late, and both grow the longer you leave it.

This guide explains exactly what you could be charged, how to reduce it, and when you can appeal.

Late filing penalties

These apply to your 2025/26 return if it isn’t filed online by 31 January 2027.

How latePenalty
1 day£100
3 months£10 a day for up to 90 days (maximum £900)
6 months5% of the tax due or £300, whichever is higher
12 monthsAnother 5% or £300, or more if information was deliberately withheld

Late payment penalties and interest

Paying late brings separate charges: 5% of the unpaid tax at 30 days, at 6 months and at 12 months. HMRC also charges interest every day from the due date until you pay. The interest rate is set at the Bank of England base rate plus 4%.

For example

Your 2025/26 tax bill is £2,000. You file and pay seven months late. Filing penalties are £100 + £900 + £300 = £1,300. Late payment penalties are 5% at 30 days and 5% at 6 months, so £200. With interest, the total is roughly £1,600 on top of your tax.

Late tax return penalty calculator

See what a late return could cost you so far.

Work it out

How to limit the damage

  • File as soon as you can. Daily penalties start three months after the deadline, so filing within that window saves up to £900.
  • Pay what you can now. Interest and payment penalties are worked out on what’s still unpaid.
  • Set up a payment plan. If you owe £30,000 or less and have filed, you can usually arrange Time to Pay online.
  • Get several years sorted at once. Our late tax returns team regularly files multiple missing years together.

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Can you appeal a penalty?

Yes, if you had a reasonable excuse for missing the deadline. You normally have 30 days from the date on the penalty notice.

What counts as a reasonable excuse?

  • Serious illness or a stay in hospital
  • The death of a close relative shortly before the deadline
  • A failure of HMRC’s online service
  • Unexpected postal delays or a fire or flood that destroyed records

Being too busy, forgetting or relying on someone else usually won’t count. You must also have filed as soon as the excuse ended. HMRC explains the rules on GOV.UK.

What if I didn’t need to file?

If HMRC asked you to file but you had no taxable income outside PAYE, you can ask them to cancel the return and the penalty.

Penalties are changing

The government has announced that Self Assessment late filing penalties will move to a points-based system in later tax years, in line with Making Tax Digital. The penalties above still apply to your 2025/26 return.

What should I do next?

Don’t wait for more letters

Every month adds penalties and interest.

Gather what you have

Bank statements and invoices are enough to start.

File and pay what you can

Then set up a payment plan for the rest.

Appeal if you can

If you had a reasonable excuse, appeal within 30 days. We can prepare it for you.

Frequently Asked Questions

Is the £100 penalty charged if I owe nothing?

Yes. It applies to a late return even if no tax is due. You can appeal it if you had a reasonable excuse or didn’t need to file.

How long does HMRC take to issue penalties?

The £100 notice usually arrives a few weeks after the deadline. Daily penalties appear later, so don’t assume silence means nothing is owed.

Can I set up a payment plan for penalties?

Yes. Penalties and interest can be included in a Time to Pay arrangement along with the tax.

I haven’t filed for several years. What should I do?

Get the returns filed as soon as possible, oldest first. If income was never declared, you may also need to make a disclosure to HMRC. We can help with both.

Can you appeal on my behalf?

Yes. As an HMRC registered agent we can prepare and submit appeals for you.

Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.

AA

About the Author

Asim Abbas
I’m Asim Abbas, founder of Wingate Accountants and a Chartered Certified Accountant. I help sole traders, landlords and directors stay on top of their tax with fixed fees and plain-English advice.

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