Self Assessment Tax Return Late Filing Penalties

It is critical that you file your outstanding return with HMRC as soon as possible. Our experts can file your tax return and advise you on the best way to appeal late filing penalties –call us on 0121 794 2289.

• If you did not file your 2018-19 tax return by the 31 January 2020 deadline you will incur a late filing penalty of £100 –you may not immediately receive notification from HMRC of the penalty but it will be on HMRC records
• Filing a tax return late is just one of a number of reasons HMRC charge a penalty –other reasons are
Paying tax late
• Failing to tell HMRC of changes affecting your liability
Making an error on your tax return which understates or misrepresents your tax liability unless you took reasonable care

Late Filing Penalties

It is vitally important that you file your tax return as soon as possible to stop late filing penalties increasing –fines increase over time.

• £100 – applied immediately the return is late
• £10 per day charged once the return is 3 months late for a maximum of 90 days
• The higher of £300 or 5% of the tax due –applied if the return is 6 months late and
• A further £300 or 5% of tax due (whichever is higher) if the form is 12 months late

Only the filing of your outstanding tax return will stop late filing penalties increasing.

Appealing A Late Penalty

Once you have filed your tax return you can consider appealing the late filing penalty – once again this process is subject to time limits.

The appeal should normally be made within 30 days of issue of the penalty notice but HMRC may consider late appeals.

An appeal can be made BY POST on Form SA370.

HMRC will cancel a penalty if they believe a taxpayer had a “reasonable excuse”.

A reasonable excuse is something that stopped you from meeting a tax obligation that you took reasonable care to meet.

Examples of reasonable excuses:

• Death of a partner or close relative shortly before the deadline
• An unexpected stay in hospital
• Serious or life-threatening illness
• Failure of computer software
• Service issues with HMRC site
• Fire/flood/theft preventing preparation of your return
• Postal delays
• A disability that prevented you from meeting your obligations
You must file your return and pay the tax due as soon as the reasonable excuse period/reason ceased

Not Reasonable Excuses

• Relying on someone else to do your return
• Payment failure due to lack of funds
• Finding HMRC systems too difficult to use
• Stating you did not receive reminders from HMRC
• Making a mistake on your tax return


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