Question submission date: April 2024
Full Question: “I missed the self-assessment deadline – what should I do and will I get penalties?”
If you’ve missed the 31st January deadline to submit your personal tax return online, otherwise known as self-assessment tax return, let’s see what you can do to make it right and get up to date with tax you might owe to HMRC.
Firstly, would it help to know that you’re not the only one? According to HMRC, while a record number of people did file on time on 31st Jan 2024, it’s estimated that over a million missed the deadline for their 22/23 returns. Not only does the return need to be submitted by this date, but any tax owed is to be paid within the same timeframe.
Secondly, you should file the return as soon as possible!
What will happen now that I’ve missed the self-assessment deadline?
HMRC will automatically send you a late filing penalty, even if there’s no tax to pay or if you’ve paid the tax but not submitted the return. The first penalty is £100, with further penalties being charged if the return remains unfiled. More information on the type and amount of penalties can be found in our Quick guide: FAQ’s on Self Assessment. These FAQs also cover the penalties for late payment, which begins 1st March following the submission deadline.
Our advice is to get the return filed as soon as possible – whether that means filing it yourself or engaging with an accountant to file on your behalf.
Once you have filed the return, there are two things left to do:
- You will need to make the payment to HMRC for the tax owed, any interest that has been charged and also for the late filing and/or payment penalties.
- At this point, you should also consider the reasons for filing late. In some circumstances, it is possible to prove to HMRC that you have a reasonable excuse for the late filing – this could be, inter alia, that you had an illness or a bereavement. There is not a definitive list of what HMRC will except as a reasonable excuse and these will be reviewed on a case-by-case basis. If HMRC agree that you do have a reasonable excuse then they will reduce the penalties they have charged, either to NIL or something more suitable. If HMRC do not believe there are grounds to reduce the penalties, you may be able to request that they are suspended on the basis that you comply with all tax filing and payment deadlines, often for 2 or 3 years. Failure to meet these obligations on time would result in the penalties being due again.
Here at Integro, we offer a standalone Personal Tax return service from £225 + VAT per return. Whether you’re a freelancer, sole trader, limited company director or landlord, we can also include this as part of a monthly package, to cover all your personal and business tax needs.
