Self Assessment penalties
Self Assessment penalties
HMRC can issue penalties if you:
Pay your tax late;
Submit your tax return late;
Don't tell HMRC about changes in your tax affairs;
Don't take reasonable care and understate the tax you owe.
When HMRC issues a penalty, they should also give a letter to explain why. This states the type of penalty and the period it has been charged. You can appeal a fine or penalty if there is a good reason.
Let's take a look at the most common penalties:
If you pay your tax late.
There are many reasons why people miss their tax payments. Generally, the sooner you let HMRC know your circumstances, the lower the fine will be.
If you cannot pay your tax bill on time, HMRC may let you set up a repayment plan. You can find out more here.
Below are the penalty rates for late payments:
If you submit your tax return late
There are standard penalties for sending in tax returns late. These apply even if you do not have a tax liability. These are as follows:
APARI Software Ltd is an accounting software provider and does not supply specific tax advice. For more information please review our full terms and conditions.
If you need any assistance please check out the other articles in our Help Centre for how to get started using your account and if you have any further questions you can contact our support team here
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