One of the responsibilities of being self-employed or the director of a Limited Company is to file a self assessment tax return - a system HM Revenue and Customs (HMRC) uses to collect Income Tax. Missing the due date for filing can lead to serious penalties. With this in mind, let's take a look at penalties that may be issued by HMRC for filing late and what you can do to avoid missing your self assessment filing deadline.
The Basics: Key Deadlines To Remember
Before diving into the consequences, it’s important to be aware of the key date: 31st January
This date is the final call to submit your tax return for the previous tax year ending on 5th April.
(If you are unsure whether you are registered for self-assessment, we would recommend calling HMRC on 0300 200 3310 to clarify. If you are unsure whether you are required to fill in a self-assessment form for the previous tax year, we recommend using the official HMRC questionnaire here).
Late Filing Penalties:
If you miss the 31st January deadline, you'll face an immediate £100 penalty. This applies even if you don’t owe any tax or are due a refund. So, putting it off can cost you right from the start.
The penalties don't stop there. If your return is more than three months late, additional charges kick in:
3 months late: £10 for each following day, up to a 90-day maximum of £900.
6 months late: An additional £300 or 5% of the tax due, whichever is higher.
12 months late: Another £300 or 5% of the tax due, whichever is higher.
There is also interest applied by HMRC to late payments that needs to be considered if filing passed your due date.
You can use HMRC's Estimate Your Penalty calculator to calculate how much you’ll need to pay in penalties and interest if you’ve missed the deadline
What If There’s A Reason?
Sometimes there are genuine reasons why you might miss the deadline. If you have a reasonable excuse, such as a serious illness or a family bereavement, you might be able to appeal against a penalty. However, not having internet access or simply forgetting doesn’t typically count. You can view more on how to appeal a late filing penalty here.
Proactive Steps To Avoid Filing Late
To avoid late filing in the future, here are some handy tips:
Start Early: Don’t wait until the last minute to start your tax return. The tax year ends 5 April, and we offer early bird pricing to encourage filing in plenty of time! Our standard SLA for self assessments is 2-3 weeks and we also offer express services.
Use your Ember Account: Check your 'My Tasks' or 'Dashboard' in Ember to view your upcoming deadlines
Set Reminders: Use your calendar or diary to set reminders well before the deadline.
Organize Your Documents: Keep your financial records in order throughout the year
Check your email: Ember sends out proactive messaging to remind you of upcoming filing deadlines via email if you have an account with us. You can also register for email reminders from Companies House.
Final Thoughts
By staying on top of your deadlines and understanding the consequences of late filing, you’ll save yourself time, money, and a lot of hassle. So, mark those dates in your diary and make tax time as smooth as possible!
We are here to help you. To have your self assessment completed & filed by one of our expert accountants please fill out the self assessment questionnaire on your Ember account. If you are unsure, a full guide on how to do that can be found here.
If you need any further support you can reach out to our team via the intercom icon in the bottom right corner of your web browser and we will be happy to assist you with any questions.