What Happen If You Miss The Self Assessment Deadline?
What If I Missed My Self Assessment Deadline?
If you’ve missed the self assessment deadline, you might not know what to expect. Although many people fear the worst when they file their tax return late, it’s rarely as bad as they imagine. HMRC may charge penalties for missing the deadline, but they’ll also give you every opportunity to limit the damage.
The following guide explains what happens if you miss the self assessment deadline and when to expect penalties. If you know exactly what to expect, missing your self assessment deadline won’t be so daunting, so read on to find out more.
When Is The Self Assessment Deadline?
Missing the self assessment deadline is easily done if you wait until the last minute to file your return. Paper returns must be received by HMRC before midnight on 31 October, and online tax returns must be filed by midnight on 31 January. As a general rule, any tax owed must be paid by midnight on 31 January as well.
If you miss any of these deadlines, you could be liable for penalties. These penalties will be applied even if you’re only one day late or you don’t even owe any tax.
Initial £100 Penalty
HMRC will automatically apply a £100 penalty the moment you miss the self assessment deadline. This first penalty is applied before they even send you your first notification that you've missed it, and will be charged even if your return is one day late.
What Happens If I’m More Than Three Months Late With My Return?
HMRC will begin to add penalties to your tax return if it’s over three months late. At three months and every day after this point, they will charge a daily penalty of £10. They will continue to charge this penalty for the next 90 days if your return is still unpaid.
Overall, this means you’ll pay up to an extra £900 on top of your initial penalty.
Penalties After Six Months and Twelve Months Late
Provided your tax return still hasn’t been filed after six months, HMRC will add another penalty to your tax bill. This penalty will be the larger option of either £300 or 5% of the tax you owe.
If you take your tax return twelve months without filing it, you’ll be hit with another identical penalty. By now missing the self assessment deadline has become expensive, especially if you owe a lot of tax.
Interest Charges If You Miss the Self Assessment Deadline for Payment
Missing the self assessment deadline for paying your tax bill incurs separate penalties from filing late. If you miss this deadline, you’ll face interest on any outstanding tax from the day after the deadline passed.
HMRC may also charge additional penalties if your tax payment is 30 days late, six months late and twelve months late.
What Should I Do If I Miss The Self Assessment Deadline?
Once you realise that you’ve missed the self assessment deadline, you should file your tax return as soon as possible. Whilst filing your return late is better than never filing it at all, the sooner you file your return the better. If possible, you should pay any owed tax in full to minimise additional penalties.
If you don’t have the money to pay the tax bill, you may be able to apply for a Time to Pay arrangement. This allows you to spread the cost of the tax bill instead of having to pay it all at once.
Can I Appeal If I Missed the Self Assessment Deadline?
HMRC may waive penalties if you can prove you had a reasonable excuse for filing your tax return late. HMRC’s system allows people to appeal penalties if they experience serious illness, a death in the family, or unexpected IT failures.
Leaving things to the last minute, or simply forgetting about the deadline is unlikely to be deemed a reasonable excuse. You usually have 30 days to appeal an automatic penalty from HMRC.
How Can I Avoid Missing The Deadline In Future?
Lazy forgetful types tend to miss their self assessment deadline by leaving it until the last minute. You can avoid this simply by staying organised and working in plenty of time. File your tax return as soon as you can, and consider paying early if you know you owe tax.
If you are unsure about anything, consider hiring an accountant. They’ll manage your tax year from start to finish, taking the stress out of your annual tax return.
Final Thoughts
Although you might worry about missing the self assessment deadline, it isn’t the end of the world. As long as you know what to expect, any anxiety you feel about filing late should quickly subside.
If you need any advice or help filing your tax return late, a self assessment expert can help you out.
