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Penalties & Fines
HMRC penalties apply for late quarterly updates, late final declarations, and late payment. Interest accrues on unpaid tax. Timely submissions and payments reduce penalty and interest risk.
- Late submission penalties increase over time
- Late payment interest is charged separately
- Reasonable excuse may reduce penalties if accepted
What it is
HMRC charges penalties for late submission and late payment under Self Assessment and MTD timetables. Penalties can increase the longer a return or update is overdue.
Nil updates may still be required in some periods — check HMRC guidance. Payment on account spreads next year’s bill. Budget for tax and National Insurance as profits grow, not only in January.
Who it applies to
Anyone with MTD or Self Assessment obligations who misses deadlines without a reasonable excuse.
What you need to do
- Set reminders for quarterly and annual deadlines.
- Submit updates even if you have no income in a period (nil updates where allowed).
- Pay tax due by 31 January and 31 July where payment on account applies.
Key points
- HMRC may reduce penalties if you have a reasonable excuse.
- Late payment interest accrues separately from penalties.
Common mistakes to avoid
- Leaving HMRC correspondence unaddressed
- Missing a quarter with zero income without filing where required
- Not setting aside cash monthly for January and July payments
How SelfSubmit helps
Regular monthly entries in SelfSubmit reduce last-minute corrections before quarterly deadlines and help identify figures that need review.