Late filing self-assessments - don't incur a £100 late penalty

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The self-assessment deadline is looming: don’t incur a late penalty

Last updated on Tuesday, January 16, 2018

Written by Alex Cadman

Self-assessment tax returns, otherwise known as Personal Tax Returns, declare your personal earnings outside of the Pay As You Earn (PAYE) system. It indicates the amount of tax you owe to HMRC or the tax refund you may be entitled to.

Self-assessments and tax payments are due to HMRC no later than midnight on Wednesday, 31st January 2018.

If you file after this deadline, you will incur an automatic late penalty of £100. This penalty is applicable if your self-assessment is up to three months late. If you file later than this, you will have to pay more.

With three weeks to go until the deadline, time is of the essence to get your self-assessment completed and filed on time.

If you’re putting off your self-assessment because you don’t want to complete the work, or are unsure how to, we can help. Our Personal Tax team can complete your self-assessment and submit it to HMRC on your behalf by the deadline. All you need to do is supply us with the relevant income information and pay the tax you owe, if applicable. Contact us to get started.

In 2017, 840,000 taxpayers filed their Tax Returns late, and in 2015-16 and 2016-17, HMRC was able to rustle up £283 million in late filing penalties.

There are plans to implement a new points-based system for those that are late in filing their self-assessments, and other taxes such as VAT Returns, to make the process fairer for those that have genuine excuses. This was announced at Autumn Budget 2017, however it won’t take effect until at least 2019.

There are cases in which late penalties are issued when they shouldn’t be; these reasons can include:

  • When an individual is unnecessarily registered to the self-assessment system
  • When there is a genuine reason the self-assessment was filed late
  • When someone has gone permanent and forgot to inform HMRC that they are back in the PAYE system


Genuine excuses for filing a late self-assessment

In the case where there may be a genuine reason for filing after the deadline, an appeal would need to be filed against the late penalty.

Genuine reasons for filing a late self-assessment may include:

  • A partner or close relative passed away, preventing you from filing
  • You had a serious illness
  • Your software failed whilst you were preparing your self-assessment
  • HMRC was experiencing issues with its online services
  • A disaster such as a fire prevented you from completing your self-assessment

Many appeals against late filing penalties are not successful, so it’s best to ensure that you’re self-assessment is filed, and your tax paid, by the deadline to avoid extra worry and hassle.

Please note that you will not be able to pay your tax bill with a personal credit card as of 13th January. Other payment methods accepted include online or telephone banking, CHAPS, debit card, direct debit or cheque.

Find out more about self-assessment and Personal Tax services.


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