HMRC to Collect £110M in Late Self Assessment Penalties

HMRC has announced that a record number of self assessment tax returns were filed for the 2023/24 tax year, with over 11.5 million being received ahead of the 31st January deadline.

However, despite breaking the record for tax return submissions, approximately 5% of people required to submit failed to do so on time—and this is set to net HMRC at least £110m in fines.

Around 1.1 million people missed the self assessment deadline (11.59pm on 31st January), incurring an immediate £100 fine, but additional penalties apply over time, including:

• £10 per day after three months, up to a maximum of £900
• An additional 5% of the tax due or £300 after six months, whichever is greater
• An additional 5% of tax due or £300 after 12 months, whichever is greater.

There are separate penalties and interest charges applied to late tax bill fines, but if you’re unable to pay these charges in full, you can appeal to HMRC and ask that you spread the cost of what you owe with a payment plan. Find out more about what to do if you missed the self-assessment deadline here.

Struggling to keep on top of your tax obligations? We can help.

Have you ever missed the self assessment deadline or made a mistake on your returns? Maybe you’re just worried about doing so and incurring hundreds of pounds in fines and charges.

Regardless of whether you’re a sole trader or director of a Limited Company, we can help you keep on top of your obligations. We help small businesses just like you to focus on what you do best and stop worrying about having to complete your tax returns every January.

From company formation and advice on bookkeeping, through to employee payroll and workplace pension auto-enrolment, we can provide a full suite of services designed to ensure your business is as compliant and efficient as possible.

To find out more about how we can help get in touch with our experienced team of small business accountants, or request your free, no obligation consultation here.