Late filing and late payment penalties
What to expect if you file or pay late.
Late filing penalties
A penalty is charged where a filing is made late. Where a filing is so late that it crosses more than one penalty date, then the rate of penalty charged is that prevailing on the penalty date.
Charges per tax year
Tax year 2025-27
- Self-Assessment taxpayers are charged late filing penalties according to the table below.
- MTD taxpayers are not charged penalties for the late filing of quarterly updates.
Tax year 2026-27
- Self-Assessment taxpayers are charged late filing penalties according to the table below.
- MTD taxpayers are charged penalties on the points-based system.
Tax year 2027-28
- The points-based system applies to all taxpayers where a penalty is incurred.
Self Assessment
If you miss the deadline, the longer you delay, the more you will have to pay. So it is important to send your Tax Return to H.M. Revenue & Customs (HMRC) as soon as you can.
If, for example, you file your Tax Return six months late, you will be asked to pay the first three penalties shown in the table below. Each penalty is a stand-alone penalty and will be charged at the rate prevailing on the day it was incurred.
All of the penalties shown in the table below will be charged, even if you have no tax to pay or have paid the tax you owe.
Penalties for filing your Self Assessment Tax Return late
| Length of delay | Penalty charge |
|---|---|
| 1 day | Initial £100 |
| > 3 months | PLUS £10 each day, up to a maximum of £900 |
| > 6 months | PLUS £300 or 5% of the tax due, whichever is higher |
| > 12 months | PLUS £300 or 5% of the tax due, whichever is higher In serious cases you may be asked to pay up to 100% of the tax due instead |
Penalties applicable from tax year 2027-28
From 6th April 2027, one penalty point will be issued for each late annual tax return. A £200 penalty is applied once a taxpayer has accumulated two points. Points are reset to zero if all submissions that were due in the preceding 24 months have been received by HMRC.
The deadlines and penalties above also apply to each partner in a partnership.
Making Tax Digital (MTD)
Penalties for filing your quarterly updates and Annual Tax return late
There will be no MTD late submission penalties for quarterly updates for the tax year 2026-27. This does not apply to late submissions of the annual tax return for the tax year 2026-27.
After April 2027, one penalty point will be issued for each late quarterly update or annual tax return. A £200 penalty is applied once a taxpayer has accumulated four points. Each successive late filing incurs another point and another £200 penalty. Points are only reset to zero if all submissions have been made on or before the due date for 12 months for taxpayers with quarterly filing obligations, and all submissions that were due in the preceding 24 months have been received by HMRC.
Late payment penalties
If you miss the payment deadline, the longer you delay, the more you will have to pay. So it is important to still send your payment to HMRC as soon as you can.
Each penalty is treated as a separate charge, which is added to any penalties already raised, where applicable. Each penalty is charged at the rate prevailing on the date it is incurred.
Self Assessment
| Length of delay | Applicable up to tax year 2024-25 |
|---|---|
| 30 days | 5% of the tax unpaid at that date |
| 6 months | PLUS 5% of the tax unpaid at that date |
| 12 months | PLUS 5% of the tax unpaid at that date In serious cases you may be asked to pay up to 100% of the tax due instead |
Self Assessment & Making Tax Digital (MTD)
| Length of delay | For tax year 2025-26 | For tax year 2026-27 |
|---|---|---|
| Up to 15 days | No charge | No charge |
| 16 to 30 days | 3% of the unpaid tax at that date | 4% of the unpaid tax at that date |
| 31 days or more | PLUS 3% of the unpaid tax at that date | PLUS 4% of the unpaid tax at that date |
| Ongoing penalty (applied daily from day 31) | 10% annual rate on the outstanding balance | 10% annual rate on the outstanding balance |
Interest charges if you pay late
You will have to pay interest on all outstanding amounts, including any unpaid penalties, until payment is received.
Record keeping penalties
Self Assessment & Making Tax Digital (MTD)
A penalty up to £3,000 may be charged for each year you fail to keep or preserve adequate records for your business. The penalty may be charged where your accounting records are inadequate or non-existent whether they are being reflected in a tax return or in a claim that is not made on a tax return. These penalties can be set at less than the maximum and are subject to the normal appeal rights.
More severe penalties may be sought by HMRC in the more serious cases, where, for example, records have been destroyed deliberately to obstruct an enquiry or where there has been a history of record keeping failures.
Failure to notify penalties
Self Assessment & Making Tax Digital (MTD)
If you do not tell HMRC when changes happen that affect your liability to tax, you may face a penalty. This is known as a “failure to notify” penalty.
A penalty may occur, for example, if you do not tell HMRC, at the right time, that:
- you are liable to tax because your new business has made a profit
- you are non-resident and have a source of rental income arising in the UK
- you have UK income that is not taxed or is not taxed at the correct rate
- you sell an asset and make a capital gain on which tax should be paid
- your circumstances change in a way that affects their tax position
The “failure to notify” penalty is calculated on potential lost revenue which is based on the amount of tax or duty that is unpaid as a result of the failure to notify. HMRC can reduce the penalty if you tell them about the failure. Further reductions may be made depending on the quality of disclosure in a similar way to the inaccuracy penalty.
