So, What Happens If You Miss the Tax Return Deadline?
Filing your tax return on time is crucial to avoid penalties and unnecessary stress. However, if you miss the deadline, you may face fines, interest charges, and even further action from HMRC. Understanding what happens if you miss the tax return deadline can help you take the right steps to minimise penalties and get your tax affairs back on track.
In this blog, I’ll explain the consequences of missing the deadline, what you can do if you’re late, and how to avoid issues in the future.
1. The Tax Return Deadlines You Need to Know
The key tax return deadlines for self-assessment in the UK are:
- 31st October – Deadline for paper tax returns.
- 31st January – Deadline for online tax returns and payment of any tax owed.
If you miss these deadlines, HMRC may issue penalties, even if you don’t owe any tax.
2. Immediate Penalties for Missing the Deadline
£100 Late Filing Penalty
If you miss the 31st January deadline, HMRC automatically issues a £100 fine for late submission. This applies even if you have no tax to pay.
Additional Penalties for Further Delays
The longer your tax return remains unfiled, the higher the penalties:
- After 3 months: A daily penalty of £10 per day, up to a maximum of £900.
- After 6 months: A further penalty of 5% of the tax due or £300, whichever is higher.
- After 12 months: An additional 5% of the tax due or £300, depending on the circumstances.
If HMRC believes you are deliberately avoiding payment, the fines could be even higher.
3. What If You Miss the Payment Deadline?
Missing the 31st January payment deadline means HMRC will charge interest on the amount you owe. The penalties are:
- 5% of unpaid tax if not paid by 2nd March.
- An additional 5% if unpaid after 6 months.
- A further 5% if still unpaid after 12 months.
These penalties can quickly add up, making it essential to settle any outstanding tax as soon as possible.
4. What to Do If You Miss the Deadline
File Your Tax Return Immediately
Even if you’re late, filing your tax return as soon as possible helps reduce additional penalties. The longer you wait, the more the fines increase.
Contact HMRC If You Have a Reasonable Excuse
HMRC may waive penalties if you have a valid reason for missing the deadline. Acceptable excuses include:
- Serious illness or hospitalisation.
- Death of a close relative just before the deadline.
- Major IT failures preventing submission.
- Fire, flood, or theft affecting your records.
You must provide evidence and contact HMRC as soon as possible to explain your situation.
Set Up a Payment Plan If You Can’t Pay
If you owe tax but can’t pay the full amount, HMRC allows Time to Pay arrangements, letting you spread payments over several months. Applying for a payment plan early can help you avoid additional penalties.
5. How to Avoid Missing Future Deadlines
Keep Records Organised
Maintaining accurate records throughout the year makes tax filing much easier. Store receipts, invoices, and income details securely, either digitally or in a physical file.
File Your Tax Return Early
Submitting your tax return well before the deadline helps you avoid last-minute issues. Early filing also gives you time to arrange payment if needed.
Use a Professional Accountant
Working with an accountant ensures your tax return is completed accurately and on time. They can help you track deadlines and avoid costly mistakes.
How TRW Accountants Can Help
At TRW Accountants, we provide expert support in Kent to ensure you never miss a tax deadline. Whether you need help filing late returns, setting up a payment plan, or staying compliant with HMRC, our team is here to help. Contact us today to discuss how we can assist with your tax return.