Category 10
Penalties & Fines
Late quarterly updates, late final declarations, and late payment can all lead to HMRC penalties.
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.
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.