If you’re filing your Self Assessment tax return, it’s crucial to stay on top of the deadlines to avoid penalties. In this guide, we’ll explore what happens if you miss the Self Assessment deadline, the fines you could face, and how to handle the situation if you’re late.
KNOWLEDGE
Self Assessment: What Happens If I Miss the Deadline?
When is the Self Assessment Deadline?
The deadline for submitting your online Self Assessment and paying any tax owed is midnight on January 31st. If you’re filing a paper return, the deadline is October 31st. Missing these deadlines can lead to penalties, so it’s essential to file on time and pay any tax you owe—even if you need to amend your Self Assessment later.
What Happens If I Miss the Deadline?
If you miss the deadline to file your Self Assessment tax return, you’ll likely face a penalty. Here’s a breakdown of the penalties for late filing:
- Up to 3 months late: There is an automatic £100 fixed penalty.
- More than 3 months late: Additional penalties apply, including £10 per day for up to 90 days. After 6 months, you will incur a £300 or 5% of the tax due (whichever is higher). After 12 months, further penalties may apply, particularly if there is evidence of deliberate withholding of information.
Can I Still Submit a Paper Self Assessment?
Yes, you can still submit a paper Self Assessment return. However, be mindful that the deadline for paper submissions is October 31st. If you miss this deadline and submit a paper return after this date, the same penalty regime applies. If you miss the paper deadline, it’s advisable to submit your return online to avoid further penalties.
Additional Fines for Late Payment
It’s not just the filing of your return that matters—you also need to pay the tax owed by January 31st. Missing this payment can lead to additional fines:
- 30 days late: A 5% penalty on the tax due.
- 6 months late: An additional 5% penalty on the tax still due.
- 12 months late: A further 5% penalty on the tax outstanding.
Can I Escape a Self Assessment Fine?
HMRC runs a “payment on account” system for those who pay most of their tax through Self Assessment. This often catches people out, especially if it’s their first time submitting a Self Assessment, as the tax due can be 50% higher than expected. It’s worth being aware of this to avoid surprises when it comes time to make payments.
Don’t Get Caught Out by Payment on Account
In some cases, you may be able to avoid penalties if you have a reasonable excuse for missing the deadline. HMRC has discretion to waive penalties under certain circumstances, such as:
- A close relative passing away shortly before the deadline.
- Experiencing serious illness.
- Facing significant IT issues, such as problems accessing HMRC’s online services.
However, HMRC will not waive penalties for reasons such as finding the Self Assessment system too difficult to use or not receiving an official reminder.
If you believe you have a reasonable excuse for missing the deadline, you can appeal the penalty. This can be done by completing an SA370 form or by submitting an appeal online.
Avoiding Future Problems
The registration process for Self Assessment is one of the trickiest parts of the journey. However, once you’re registered, filing future returns should be easier, especially if you keep a record of your username and password for the service.
Remember to keep your financial records for at least five years after the January 31st deadline for the relevant tax year, as HMRC may request them to ensure you’re paying the correct amount of tax.
For example, if you file your 2023/24 tax return by January 31st, 2025, you must keep your records until at least the end of January 2030.
Filing your return early can help you avoid unexpected surprises when it comes to paying your tax bill.
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