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Author: JW / / Latest News

Don’t fall foul of missing the Tax Return deadline

We know that 31st January 2018 Tax Return deadline seems a long time away but it will creep up fast!  We never want any of our clients to fall victim to unnecessary HMRC penalties, therefore if you have not already done so, please let us have your completed ‘Tax Information Request’ as soon as possible we can complete your return, get it approved by yourself and submit it to HMRC.

If we do not receive information by the end of October 2017 we cannot guarantee being able to complete your return by the penalty deadline.


HMRC will charge an initial penalty of £100 if your tax return is filed after 31 January 2018.

Additional penalties for continuing failure to submit the return will be charged as follows:

  • Over 3 months late – a £10 daily penalty up to a maximum of £900
  • Over 6 months late – the higher of £300 or 5% of the tax shown on the return
  • Over 12 months late – a further £300 or a further 5% of the tax due (whichever is the higher). In particularly serious cases the penalty can be up to 100% of the tax due.

For partnerships, each partner receives a penalty, so a 2 partner partnership will get double the penalties above, 3 partners triple etc, plus penalties for their own return if that is also late submitted.

Late payment of tax

For balancing payments due on 31 January HMRC will charge the following penalties if tax is paid late:

  • A 5% penalty if the tax due on 31 January is not paid within 30 days (the ‘penalty date’)
  • A further 5% penalty if the tax due on 31 January is not paid within 5 months of the penalty date (i.e. by 31 July)
  • Additionally, there will be a third 5% penalty if the tax due on 31 January is not paid within 11 months of the penalty date (i.e. by the following 31 January).

These ‘late payment’ penalties are in addition to the interest that is charged on all outstanding amounts, including unpaid penalties, from due date to date of payment.

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