HMRC may notify you that you should file a tax return either by sending you a paper return or notifying you through your personal tax account that you are required to file a return. If you receive such a notification, you are legally obliged to file a return, whether or not you have any income for the year. There are various penalties that HMRC will charge if the return is not filed by the due date, or the tax is paid late.
Tax return due dates
A tax return must be filed by 31st October following the tax year end if a paper return is used, or by 31st January of the following calendar year if the return is filed on-line. If the return is not filed by the due date, the HMRC system automatically issues penalties for late filing. These penalties can quickly mount up: if the return is over 12 months late, penalties of £1,600 will accrue, with interest added to late payment of the penalties.
If you register for self-assessment late, the deadline is extended to three months after the date on which HMRC issue a return or notify you that a return is required. The revised due date will be shown on the notification.
Late filing penalties
- An automatic penalty of £100 is charged, even if you do not owe any tax.
- If the return has not been filed within 3 months of the deadline, a further daily penalty of £10 per day up to a maximum of £900 is charged.
- If the return has not been filed within 6 months of the deadline, a further penalty of £300 or 5% of the tax owing is charged.
- If the return has not been filed within 12 months of the deadline, another penalty of £300 or 5% of the tax due is charged.
Late filing penalties: example
| Tax return for year ended | 5 April 2024 On-line | Paper filing | |
| Paper filing date | 31 October 2024 | ||
| On-line filing date | 31 January 2025 | ||
| Initial £100 penalty | 1 February 2025 | 1 November 2024 | £100 |
| Daily penalty at £10 per day if return is not filed within 3 months. | 1 May-1 August 2025 | 1 November 2024-1 March 2025 | Up to £900 |
| 6 months late penalty | 1 August 2025 | 1 March 2025 | £300 |
| 12 months late penalty | 1 February 2026 | 1 November 2025 | £300 |
| Total penalty | £1,600 |
- These are basic penalties: they may be higher if the tax owed is significant.
- There are late payment penalties if the tax due is not paid on the due date (31 January 2025 in this example)
Challenging a late filing penalty
In exceptional cases, HMRC will consider appeals against the late filing penalties, but they do not normally consider appeals until the return has been filed, so you must file the return before you make an appeal, even if it shows no income and no tax payable. Penalties can be cancelled only if you have a “reasonable excuse” for filing late.
Appeals must be in writing on form SA370 (https://www.gov.uk/guidance/check-when-to-appeal-a-self-assessment-penalty-for-late-filing-or-late-payment. ). The appeal needs to be made within 30 days of the penalty notice being issued, but late appeals may be considered if there was a justification for the delay. You can appeal to the First Tier Tribunal if your late appeal against the late filing penalty is rejected.
If HMRC rejects your appeal, you can ask for a review, which will be carried out by a different HMRC officer who has not been involved in your tax affairs before. If you did not include all relevant information about why the return was late in your initial appeal, requesting a review may allow that additional information to be considered. If, after the review, HMRC still reject your appeal, you can make a further appeal to the First Tier Tribunal.
What is a reasonable excuse?
HMRC and the Tribunal can only accept an appeal if they consider that you have a “reasonable excuse”.
- The reasonable excuse must continue throughout the whole period between the missed filing date and the date the return is actually filed. If you did not file the return as soon as possible after you became able to file it, the penalties will not be cancelled.
- HMRC take a narrow view of what is a “reasonable excuse”. This is explained at https://www.gov.uk/tax-appeals/reasonable-excuses.
- The Tribunal may in some cases take a wider view of what is reasonable, but only with clear evidence that there was a valid reason that the return was not filed on time.
Appeals to the First Tier Tribunal
If HMRC reject your appeal you can ask for the appeal to be heard by the Finance and Tax Tribunals, First Tier Tribunals (Tax). This can be done either at an in-person oral hearing or on paper. There is more information and an appeal form at https://www.gov.uk/tax-tribunal/appeal-to-tribunal.
Asking for the return to be withdrawn
HMRC may withdraw the return if they agree that it was issued in error, and you have no income that needed to be reported on a return. This could either be because you had no income in the year, or all your income was fully taxed at source under PAYE.
HMRC will not withdraw the return if you had income, but no tax liability: making a loss in your business is not a reason to withdraw the return. You will still need to file a return even if you make no profit or insufficient profit to create a tax liability. There are only limited circumstances in which HMRC will withdraw a return, and the application must be made within 2 years of the end of the tax year (5 April 2026 for the tax year ended 5 April 2024).
To ask for a return to be withdrawn you should call 0300 200 3310
HMRC estimate of tax due if a return is not filed.
If you do not file a return by the deadline (31st October for paper returns and 31st January for on-line returns), HMRC may make a formal estimate of the tax that they believe you owe, called a determination. The tax shown in the determination is payable immediately, with interest accruing on late payment. The only way to contest or reduce the estimated tax demand is to file a return for the year within 3 years of the 31st January on-line filing date.
Once the determination is made, HMRC are entitled to collect the tax due, including taking recovery proceedings and even asking the court to make the debtor bankrupt.
Penalties for late payment of tax.
HMRC will charge interest on any tax that is paid late at their published rate which is 2.5% above the Bank of England base rate. In addition, there are penalties for late payment.
- 5% of the tax due if the tax is unpaid after 30 days.
- A further 5% if the tax is unpaid after 6 months.
- A further 5% if the tax is unpaid after 12 months.
