Each year, hundreds of thousands of people will either submit a Self Assessment tax return late or incorrect.
If you file your return late, the following penalties apply:
- £100 if you are one day late
- £10 for each additional day (capped at 90 days) plus £100 initial fine if you are up to 3 months late
- Either £300 or 5% of the tax due (whichever is higher), on top of the penalties listed above, if you are 6 months late
- An additional £300 or 5% of the tax due, plus the penalties listed above if you are 12 months late
If you make a mistake on your tax return, HMRC will determine whether you have been careless with your return or if you were trying to mislead them over how much tax you owe.
- No penalty if you have made an honest mistake
- 0% to 30% penalty if HMRC thinks you have been careless
- 20% to 70% penalty if HMRC thinks you have underestimated your tax on purpose
- 30% to 100% penalty if HMRC thinks you have underestimated your tax on purpose and tried to cover