What HMRC Tax Surcharges Apply to Self Assessment?

HMRC will charge penalties and interest on Self Assessment Tax returns that are filed late or which contain significant errors.

Surcharges for Late Filing (Whether or Not Tax is Owed)

HMRC will automatically apply a fine of £100 for tax returns filed after the 31st January. So if you had submitted your tax return on February 1st, the £100 penalty would apply. This £100 fine applies for all tax returns that are submitted up to three months late.

If your Self Assessment Tax Return is filed later than three months late (after 1 May), you will have to pay an additional £10 per day fine for up to 90 days.

After six months, you will receive an additional fine of the greater of £300 or 5% of the tax owed.

After a year, you will receive an additional fine of the greater of £300 or 5% of the tax owed.

Surcharges for the Late Payment of Tax

There is no charge for tax paid within 30 days of the filing date of 31 January. After 30 days have elapsed, a 5% charge will be levied on the tax owed on that day.

If the payment has not been made within 6 months of the filing date, there will be an additional 5% charge levied on the tax owed on that day.

If the payment has not been made within a year of the filing date, there will be an additional 5% charge levied on the tax owed on that day.

You should also be aware that HMRC will charge interest on all outstanding amounts at the late payment rate of 2.75%.

You can estimate your penalty for Self Assessment tax returns that have been filed late and late payments of tax here: https://www.gov.uk/estimate-self-assessment-penalties

You can appeal against a penalty if you have a reasonable excuse.

Penalties and Surcharges for Inaccurate Tax Returns

You can be charged a penalty if your Self Assessment tax return means that the amount of Income Tax or National Insurance contributions are understated or misrepresented within the return.

The decision to charge a penalty and the amount of the penalty will vary depending on whether the error was a genuine mistake, whether it occurred because of a lack of reasonable care, deliberate or deliberate and concealed. The more serious the offence, the higher the penalty will be. In certain circumstances, you may be able to appeal HMRC’s decision to levy surcharges on late payments or filing of your return.

Need Advice?

We can help advise you if you have substantial tax arrears and penalties and cannot pay them. Call us on 08000 746 757 for a free of charge, no obligation discussion or use the live chat function on your screen now. We’re always happy to help.

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