Self Assessment Tax Return Penalties

If you are required to complete a self assessment tax return it is important you complete it within the deadlines set by HMRC. Failure to meet the deadlines for submitting your tax return, without a reasonable excuse, will generally result in you having to pay penalties which increase the later you submit your return. If you do not submit your self assessment tax return within the deadlines set, HMRC may estimate the tax you owe.

Penalties for missing the Self Assessment Tax Return deadline from 2011/2012 tax year:

• 1 day late – £100. This penalty still applies if you have no tax to pay or have paid any tax you owe.
• 3 months late – £10 for each additional day, up to 90 days (maximum of £900). This is as well as the £100 1 day late penalty.
• 6 months late – £300 or 5% of the tax due, whichever is the higher. This is as well as the two penalties listed above.
• 12 months late – £300 or 5% of the tax due, whichever is the higher. In some cases you may be required to pay up to 100% of the tax due instead. These are as well as the three penalties above.

Penalties for missing the tax payment deadline:

• 30 days late – 5% of the tax you owe at that date.
• 6 months late – 5% of the tax you owe at that date. This is in addition to the 5% above.
• 12 months late – 5% of the tax unpaid at that date. This is in addition to the two 5% penalties above.

Failure to submit your self assessment tax return and pay any tax you owe within the deadlines set will generally result in you having to pay the tax that you owe, interest on any tax that you pay late, any penalties that you owe and interest on any unpaid penalties that you pay late.