Explaining Late Return Fines for Self Assessment
Before you panic, it is important to know that late Self Assessment penalties do not have to keep increasing. Bringing us on board early can reduce how long you remain liable for penalties by stopping further charges and dealing with HMRC on your behalf. Acting promptly limits exposure and puts control back in your hands.
When late filing penalties start
For online Self Assessment returns, the filing deadline is 31 January following the end of the tax year. If your return is not submitted by this date, HM Revenue and Customs applies an automatic late filing penalty, even where no tax is due.
The standard penalty structure
Late filing penalties increase the longer a return remains outstanding:
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A £100 fixed penalty applies immediately after the deadline.
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Daily penalties of £10 per day can apply once the return is three months late, capped at £900.
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A six-month penalty of £300 or 5 percent of the tax due, whichever is higher, may be charged.
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A twelve-month penalty of £300 or 5 percent of the tax due can be added again.
Interest also accrues on any unpaid tax, increasing the total amount owed over time.
Reasonable excuse and appeals
HMRC may cancel penalties where a valid reasonable excuse exists, such as serious illness or unexpected system failures. Appeals must be submitted within HMRC deadlines and supported with appropriate evidence.
How North Devon Accounts can help
If you are facing late return fines or are worried about missing the deadline, North Devon Accounts can assess your position, submit overdue returns, and deal directly with HMRC. Contact North Devon Accounts today to limit further penalties and bring your Self Assessment back on track.