UK resident landlords | Late filing and late payment penalties

Late filing and late payment penalties

What to expect if you file or pay late.

Penalties if you miss the Tax Return deadline

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 send your Tax Return back six months late, you will be asked to pay the first three penalties shown in the table below.

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.

Not sure if you have missed a deadline? To ensure your peace of mind, get in touch to discuss this or any other points on penalties

Penalties for sending your Tax Return late

Length of delayPenalty you will be asked to pay
1 dayInitial £100
3 months£10 each day, up to a maximum of £900
6 months£300 or 5% of the tax due, whichever is higher
12 months£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

The deadlines and penalties above also apply to each partner in a partnership.

Interest and penalties if you don’t pay on time

If you miss the 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.

If, for example, you pay more than six months late, you will be asked to pay the first two penalties shown in the table below.

Penalties for paying late

Length of delayPenalty you will be asked to pay
30 days5% of the tax unpaid at that date
6 monthsA further 5% of the tax unpaid at that date
12 monthsA further 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

Interest charges if you pay late

You will have to pay interest on all outstanding amounts, including any unpaid penalties, until payment is received.

Not sure how much interest has accrued on your account? Contact us today to discuss

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