Glossary · UK

What is Late Filing Penalty (Self Assessment)?

An automatic £100 penalty for missing the 31 January deadline, rising with daily charges and percentage penalties up to 12 months late.

Full Definition

HMRC imposes a structured penalty regime for late Self Assessment tax returns under Schedule 55 FA 2009. An automatic £100 fixed penalty applies immediately after the 31 January midnight deadline (even if no tax is owed). If the return is still outstanding after 3 months, daily penalties of £10 per day accrue for up to 90 days (maximum £900). After 6 months HMRC charges the greater of £300 or 5% of the tax due. After 12 months a further charge of the greater of £300 or 5% of the tax due (or 70%/100% for deliberate withholding of information) is added. For partnerships, penalties apply to each partner. HMRC may cancel penalties where a reasonable excuse exists. The paper return deadline is 31 October and the online deadline is 31 January following the tax year end.