What happens if I haven’t submitted my tax return on time?

If you haven’t submitted a tax return on time then you will be automatically charged £100 on 1st Feb – regardless of whether you owe any tax or not.

The impact of ‘Making Tax Digital‘ is becoming real

HMRC can then issue a ‘determination’, this is an estimated bill that will stand until you send in your actual figures.  But you really don’t want to wait too long as there are some hefty penalties.

  • If you are 3 months late then you will be charged a ‘daily penalty’ of £10 per day, up to a maximum of £900.
  • If you are 6 months late there will be another penalty added of £300 (or 5% of the tax owing if this is greater)
  • If you are then 12 months late, you will be charged another £300 (or 5% of the tax owing if this is greater)
  • In exceptional circumstances you can be given a penalty of up to 100% of the tax due.

So by being 12 months late you are likely to have received penalties of £1600

If you don’t pay your tax bill on time then there are penalties for that too..

5% of tax if not paid after 30 days

Then another 5% of tax if not paid after 6 months

And you guessed it, another 5% of tax if not paid after 12 months

So by paying 12 months late you will pay penalties of 15% of your tax bill

You will also be charged interest on any unpaid amounts from 1st February

In exceptional circumstance you may be able to appeal against penalties


We are always happy to answer quick questions, even if you’re not a client.