Self Assessment penalties and how to avoid them
Late filing and payment penalties - explained
HMRC's Self Assessment penalty regime applies automatic penalties for late filing and late payments. Understanding the system helps you avoid them.
Late filing penalties
- 1 day late: £100 automatic penalty
- 3 months late: £10 per day for up to 90 days (maximum £900)
- 6 months late: 5% of the tax due or £300, whichever is higher
Late payment penalties
30 days late: 5% of unpaid tax. 6 months late: further 5%. 12 months late: further 5%. Interest also accrues from 31 January on the unpaid amount. Filing on time even if you cannot pay in full avoids the late filing penalties.
💡 Good to know: File your return on time even if you cannot pay the tax immediately. Late filing and late payment are separate penalty regimes. You can file and arrange a Time to Pay agreement with HMRC for the outstanding amount, avoiding the filing penalty while managing the payment.
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