Late Filing Penalty

A late filing penalty is a fee charged by HMRC if you file your tax return late. As you might expect. The penalty varies depending on whether you’re a sole trader or whether you run a limited company.

The late filing penalty as a sole trader

Here are a few important things to bear in mind when it comes to paying your Self Assessment tax return:

  • There is a separate fine for registering as self-employed late and paying your tax bill late, and they get added up
  • You pay interest when you pay late
  • You’re fined for filing late even if you owe no money in taxes, but had to file for another reason, for example, if you were already registered for Self Assessment
  • The late penalty starts at £100 if you’re a day late and it can increase all the way to £1,600 for a whole year.

Be aware that you are allowed to appeal a fine with HMRC, but you need a good reason to do so. That can be anything from:

  • A house fire
  • Flooding
  • Bereavement
  • Serious illness
  • Deadlines to be aware of

As a sole trader, here are the deadlines that you should put into your diary to stay on top of things when it comes to paying your taxes:

  • The tax year – 6th April – 5th April
  • Tax return deadline – 31st January
  • Payment on Account deadline – 31st July
  • Register for Self Assessment online – 5th October

Frequently Asked Questions

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