HM Revenue and Customs (HMRC) has confirmed that households submitting Self Assessment tax returns late will face penalties of up to £300 from August onwards. This follows the introduction of a January 31 deadline earlier this year by the Labour Party government, requiring taxpayers to submit their returns on time.
If the deadline is missed, an automatic fixed penalty of £100 is applied. Additional penalties of £10 per day are charged for each day the return remains outstanding, up to a maximum of £900.
Penalties increase substantially if a return is more than three months late. At this point, HMRC can impose a further £10 daily charge for up to 90 days, potentially leading to total daily penalties reaching £900.
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According to the Low Income Tax Reform Group, further penalties apply if returns are six or twelve months late, typically around 31 July 2026 and 31 January 2027 respectively. These late filing penalties usually amount to the higher of £300 or 5% of the tax owed.
HMRC urges taxpayers to submit their Self Assessment returns promptly to avoid these charges. The tax authority also notes that all partners in a partnership will be penalised if a partnership tax return is filed late.
Myrtle Lloyd, HMRC’s Chief Customer Officer, expressed gratitude to those who met the deadline, saying, “Thank you to the millions of people and agents who filed their Self Assessment tax return and paid any tax owed by 31 January.” She added, “Anyone who missed the deadline should file their return as soon as possible, as penalties and late payment interest may be charged.”
HMRC recommends using their digital channels, which provide the quickest and easiest method to manage tax affairs. Taxpayers can find more information by searching ‘Self Assessment’ on GOV.UK.