Charges for filing and or paying your Self Assessment tax return late
If you file or pay your Self Assessment tax return late, here is a reminder of all the potential penalties and interest charges:
File your Self Assessment tax return late:
Submit your tax return after midnight on 31st January and you will be charged an automatic fixed rate penalty of £100, regardless if there is any tax due or if the tax has been paid.
Whilst the return remains unfilled, a £10 per day penalty will be charged for a period of up to 90 days (a maximum charge of £900).
If after 6 months, the tax return has yet to be filled, a further 5% of the tax due or £300 if higher, will be charged.
If after 12 months, the tax return has still not been filled to HMRC, a further 5% penalty or £300 will be charged. At this point HRMC will also take behaviour into account i.e. if the tax payer is deliberately withholding information further fines could be applied.
Paying your Self Assessment tax bill late:
In In addition to the late submission charges, if the tax owed is paid late the following charges will also apply:
If payment is 30 days late, 5% of the total tax due is charged.
If payment is 6 months late, 5% of the total tax is due again.
If payment is 12 months late, 5% of the total tax is again due and behaviour will be taken into consideration with a view for further fines. your digital account you must keep the following (according to HMRC):
HMRC interest charges:
HMRC has recently increased their interest rate that is charged on all outstanding tax balances, meaning on top of the above-mentioned penalties HMRC will charge an annual interest rate of 7.75%, this is from the due date until the date of the payment. Meaning you will be charged interest on top of any unpaid tax as well as have to pay any penalties.
HMRC offer a penalty calculator which you can access here
If you are struggling to make your tax payment, get in touch with HMRC with a view to making a time to pay arrangement sooner rather than later.before the deadline.