There are separate penalties for filing a late return and for late payment of taxes owed. If you are late with both the return and tax owing, you will be liable for penalties and charges on both.
In addition HMRC will charge interest at 3.25% on any tax owing and on the penalties and charges incurred as a result of the late payment of tax owed.
| Late payment | Penalty |
| 30 days late | 5% of tax due |
| 6 months late | 5% of tax outstanding at that date |
| 12 months late | 5% of tax outstanding at that date |
Please note, if the taxpayer makes a ‘time to pay agreement’ with HMRC, the penalty could be suspended, however the taxpayer will become liable to the penalty if the suspension agreement is broken.
| Late filing | Penalty |
| Miss filing deadline | £100 |
| 3 months late | Daily penalty £10 per day for up to 90 days (max £900) |
| 6 months late | 5% of tax due or £300, if greater* |
| 12 months late | 5% or £300 if greater*, unless the taxpayer is held to be deliberately withholding information that would enable HMRC to assess the tax due. |
| 12 months & taxpayer deliberately withholds information | Based on behaviour:
Reductions apply for prompted and unprompted disclosures and telling, giving and helping. |
* Subject to multi-penalty rule paragraph 17(3) of Sch FA 2009