Income tax self-assessment | Standard penalties for filing late |
Late return | £100 (or £100 per partner for a partnership) |
Plus: 3 months late | £10 per day up to a maximum of £900 |
Plus: 6 months late | Further penalties calculated on the greater of 5% of tax due or £300 |
For failure to notify liability or for careless inaccuracies in a return: Failure not deliberate: up to 30% of tax Failure deliberate but not concealed: up to 70% of tax Failure deliberate and concealed: up to 100% of tax Where the failure or inaccuracy relates to an offshore asset or income these penalties are scaled up by either 50% or 100%. | |
Standard penalties for paying balancing amount late: | |
Unpaid by 1 March | 5% of the unpaid tax due at that date |
6 months late | A further 5% penalty of the tax that remains unpaid at the date |
12 months late | A further 5% of the tax that remains unpaid at the date |
Other penalties: Failure to keep and retain tax records: up to £3,000 per year of assessment False statements to reduce payments on account: up to the shortfall of tax Failure to produce documents or obstructing an inspection: £300 plus daily penalty of up to £60 The Upper Tribunal may impose a penalty where significant tax is at risk. |
Corporation tax self-assessment | 2019/20 |
1 day late | £100 |
3 months late | Another £100 |
6 months late | HMRC will estimate your corporation tax bill and add a penalty of 10% the unpaid tax |
12 months late | Another 10% of any unpaid tax |
Late 3 times in a row | The £100 penalties are increased to £500 |
For failure to notify liability or for inaccuracies in a return:Failure not deliberate: up to 30% of tax Failure deliberate but not concealed: up to 70% of tax Failure deliberate and concealed: up to 100% of tax | |
PAYE | |
Form P11D(b) where due | £100 per 50 employees per month late |
PAYE – Real Time Information (RTI) | |
– For each late return | |
– First return in a year filed late | No penalty, except for annual schemes |
– Thereafter: based on number of employees. For all PAYE schemes. | – 1-9: £100 – 10-49: £200 – 50-249: £300 – 250 or more: £400 |
Automatic late payment penalties will apply at some point when PAYE is paid late by the employer. Until then, interest is charged on late payments, with a penalty raised on a risk assessed basis. (See table below for rates) | |
CIS | |
Monthly return – CIS 300 | |
Late return | £100 |
Plus: 2 months late | £200 plus penalties above |
Plus: 6 months late | £300 or 5% of the CIS deductions shown on the return, whichever is the higher. This is as well as the penalties above |
Plus: 12 months late | In serious cases you may be asked to pay up to £3,000 or 100% of the CIS deductions shown on the return (whichever is higher). These are as well as the penalties above |
Maximum penalty for late registration | £3,000 |
Failure to provide information | £3,000 |
VAT: default surcharge periods | |
First return in surcharge period | 2% of the VAT payable on the return (see below) |
Second return in surcharge period | 5% |
Third return in surcharge period | 10% |
Fourth and subsequent return in surcharge period | 15% |
Notes
- VAT default surcharge also applies when the VAT return has been submitted but the VAT remains unpaid. The penalty is calculated at the rate shown applied to the VAT outstanding. Late repayment returns still register as a default, but no penalty is due.
- Surcharges at 2% and 5% are not levied if the amount of the surcharge does not exceed £400, but the default still registers and increases the potential surcharge for the next default.
- Where the 10% and 15% surcharges are less than £30, a minimum £30 surcharge is applied.
Trustee registration service penalties
There is a requirement to register using the trustee registration service by the due date of 31 January after the end of the tax year in which the trustees pay tax on trust assets or income and also a requirement to notify any change of information by the due date of 31 January after the end of the tax year in which the trustees pay tax on trust assets or income.
HMRC will charge a fixed penalty to reflect the period of delay:
- Registration made up to 3 months from the due date – £100 penalty
- Registration made three to 6 months after the due date – £200 penalty
Registration more than 6 months late – either 5% of the tax liability or £300 penalty, whichever is the greater sum.
Late payment penalties – PAYE, NIC and CIS tax
There is a penalty regime under which late payment of PAYE, NIC and related liabilities during the tax year will attract a penalty. The first late payment in the tax year is not liable to penalties but subsequent late payments attract a penalty base on the total number of late payments in the tax year. These penalties are issued automatically, and notices are sent out quarterly. The regime is currently operated on a risk assessed basis, charging penalties to employers who are regularly late or owe significant sums of money.
Tax is due by the 19th of the following month or the 22nd if paid electronically. Small employers may use the quarterly payment scheme.
Limited company accounts: late-filing penalties
Penalties for late filing are as follows:
Length of delay, based on the filing date | Private company | Public company |
Not more than 1 month | £150 | £750 |
More than 1 month but not more than 3 months | £375 | £1,500 |
More than 3 months but not more than 6 months | £750 | £3,000 |
More than 6 months | £1,500 | £7,500 |