How the penalty builds up
- The day after 31 January. An automatic £100, regardless of whether tax is owed.
- After 3 months. £10 a day for up to 90 days, adding up to £900.
- After 6 months. The greater of 5% of the tax due or £300.
- After 12 months. Another 5% or £300, and more in serious cases where information is withheld.
How to limit the damage
File as soon as you can, because the daily penalties stop once the return is in. If you have a reasonable excuse, such as serious illness or bereavement, you can appeal within 30 days. And filing early next year removes the risk entirely.
Return overdue or a penalty landed?
Acting quickly limits the penalties, and a genuine reasonable excuse can be appealed. TaxTune files your overdue return fast and appeals the penalty where there are grounds.
Let us get you back on track
We prepare and file your overdue return, appeal penalties where we can, and make sure next year is filed early. Fixed fee.
Frequently asked questions
What is the penalty for filing a tax return late?
An automatic £100 the day after 31 January, even if no tax is due, then £10 a day after 3 months up to £900, then the greater of 5% of the tax or £300 at 6 and 12 months.
Do I get a penalty if I owe no tax?
Yes. The £100 late filing penalty applies even when your tax bill is zero, as long as HMRC has asked you to file a return.
Do the daily penalties keep running?
The £10 daily penalties run for up to 90 days after the 3 month point, so up to £900, and stop once you file the return. Filing quickly limits them.
Can I appeal a late filing penalty?
Yes, within 30 days, if you have a reasonable excuse such as serious illness, bereavement or an HMRC system failure. You normally need to have filed the return first.
How do I avoid the penalty next year?
File early. Preparing your return in the autumn rather than late January removes almost all of the risk and the stress.