Late tax return penalties
Every year almost 1 million people miss the tax filing deadline and have to pay tax return penalties.
There are three different kinds of tax return penalties:
- a fine for filing late: even if you owe no money in taxes
- a separate fine for paying your tax bill late
- and interest, also for paying your tax bill late.
Penalties for late filing
Total fines for filing a year late start at £1,600 but can technically be unlimited – it all depends on how large your original tax bill was:
|How late you are||Fine (each gets added to the others!)|
|between 1 day and 3 months||£100 flat fine|
|between 3 months and 6 months||£10 each day|
|between 6 months and 12 months||£300 flat or 5% of your tax bill (whichever is greater)|
|over 12 months||£300 flat or 5% of your tax bill (whichever is greater)|
Penalties for late payment
If you owe a tax bill and miss the payment deadline you will have to pay additional fines:
|How late you are||Late payment penalty|
|between 1 day and 30 days||0|
|between 30 days and 6 months||5% of your tax bill|
|between 6 months and 12 months||another 5%|
|over 12 months||and another 5%|
Interest for paying late
This is calculated yearly, and it is (how else) added to your other penalties as well:
|Period in which you were late||Annual interest rate|
|Since 21 August 2018||3.25%|
|21 November 2017 – 20 August 2018||3%|
|23 August 2016 – 20 November 2017||2.75%|
|29 September 2009 – 22 August 2016||3%|
|before 29 September 2009||see the full list here|
What you can do to reduce your tax return penalties
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