What Happens If You Don’t File Your Self- Assessment Tax Return?

When it comes to late submissions of tax returns in the UK, there are penalties in place to encourage individuals to file their returns on time. The penalties charged for late submissions vary depending on the delay period and the type of tax return. The information below is elaborated from the official UK government source, specifically from the page titled “Penalties for late submission” located at www.gov.uk.

For individuals who fail to submit their Income Tax returns by the deadline, which is usually by midnight on the 31st of January following the tax year, the penalties are as follows:

• Initial Penalty: If the tax return is up to 3 months late, there is an initial fixed penalty of £100 which is charged even if there is no tax to pay or if the tax due has already been paid on time.
• Daily Penalties: If the tax return is more than 3 months late, a daily penalty of £10 per day is charged, accumulating for up to 90 days. This means that an additional charge of £900 can be added to the initial fixed penalty.
• Late-Filing Penalties: After 6 months, an additional penalty of £300 or 5% of the tax due (whichever is higher) is charged. This amount will increase further after 12 months if the return is still outstanding.