It won't get you off the hook, but it might make things a little less painful. At the end of the day, the way you deal with the problem will determine how hard the taxman's axe falls.
In any case, admitting to the mistake early is your best best. The longer you wait, the more suspicious you look when it all comes out. No matter how complicated your Self Assessment problems are to unravel, if it takes over 3 years to get them straightened out, you've got even more trouble. In the good old days last year, say , openly calling attention to your mistakes could see you avoiding penalties altogether.
That seems like a less likely outcome from now on, though. We're on great terms with HMRC, and have a strong record of protecting our customers when they've made honest mistakes. We've got the expertise to keep your returns error-free and filed on time.
Yes, a few - but you have to be realistic about your chances. For instance, here are a few situations HMRC considers to be "reasonable excuses" for missing a deadline:. Keep in mind that you can't just lie and assume you'll be let off. Giving more false information after you've already been caught will only make things worse. That said, the taxman isn't interested in punishing people for things that genuinely weren't their fault.
If you've taken all reasonable care over your payments and paperwork, you shouldn't come off too badly. This certainly can happen, and it occasionally does. If you get a surprise demand from HMRC for a tax return or payment, make a fuss straight away. It could be a simple mistake, or maybe even a case of identity theft. Whatever the reason, you need to get it clarified as quickly as possible. Whatever you do, don't stick your head in the sand and think the demands will stop.
They won't, and they'll just keep getting louder if you ignore them. The taxman's getting serious, so it's time to get your books in order. Remember, the January the 31st deadline for filing your return and paying the tax you owe is already up. If you're running late, your penalties are already stacking up — and they're only going to get higher as time goes by.
Take a look at our online tax return calculator for a free quote for our Tax Return Service , or get in touch by phone or email for more information. If you're already facing a penalty, definitely get in contact as soon as possible. You'll be surprised how much we can do to help. Whether you think you might be owed a tax rebate or have questions about your tax codes we can help. If you can't understand why the taxman's chasing you, we'll solve the mystery.
If you've already got a penalty, we might be able to get it reduced or dropped entirely. The corresponding penalty ranges, assuming Failure to Correct penalties do not apply see below , are as follows:.
Category 1 includes EU member states and the United States of America but you should double-check regarding overseas territories of these countries. If, at 5 April , a taxpayer had been non-compliant in respect of their offshore income and gains, they were required to bring their tax affairs up to date by 30 September under the Requirement to Correct rules. As part of doing this, you will need to consider whether the Requirement to Correct regime applies to any of the tax years involved.
Jason has not declared this pension to HMRC as he genuinely, although incorrectly, thought it was taxable only in the other country. Under the WDF, as well as the unpaid tax and interest and assuming HMRC do not accept he has a reasonable excuse for his failure , he will have to pay the following penalties:.
Technically, HMRC may also charge a late payment penalty — but if they did so, the amount of failure to notify penalty would be reduced by the amount of the late payment penalty.
In practice, therefore, HMRC would usually charge either a failure to notify penalty or a late payment penalty, but not both. In each case, he may argue that a penalty at the lower end of the range should be applicable if he has been helpful and co-operative in his disclosure and given HMRC good and clear information. For more information on offshore penalties more generally, see GOV.
If you are self-employed, we suggest you also look at our self-employment page on enquiries. UK — this is intended for agents and advisers, but you may find it helpful. Skip to main content.
Home Tax Guides Tax basics Tax penalties. Tax penalties. Updated on 19 October Tax basics. What penalties can HMRC charge me? For example: if you pay tax late; if you submit a tax return or other paperwork late; if you fail to tell HMRC about changes that affect your tax liability; if you make an error on a tax return, payment or other paperwork that understates your tax liability or misrepresents your tax liability, unless you took reasonable care. We look at these different types of penalty in more detail below.
Late payment penalties I have been charged interest on my late tax payment. Why do I have to pay a penalty on late payment as well as interest? Late submission penalties There are standard penalties for sending in tax returns late. If you are charged penalties you will receive a letter from HMRC like this:. What income is taxable?
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The deadline for paying any outstanding tax is 31 January after the end of the tax year unless you're paying through PAYE. The interest rate is currently 2. These charges are separate, and in addition to, any charges for filing your tax return late.
You can calculate your potential penalties using the gov. You'd be charged interest for each day it's not paid. Sometimes things happen that mean you can't file your tax return on time. HMRC will accept certain 'reasonable excuses' for being late. A reasonable excuse is defined as being 'normally something unexpected or outside your control that stopped you meeting a tax obligation'.
Each case will be considered individually. It's always best to file your return in plenty of time before the deadline if possible. If you were planning to file a paper tax return , but don't think it will reach HMRC by the 31 October deadline, don't send it off late.
If you do, you'll incur the fines explained above. Instead, you can complete an online tax return, which means you'll have an extended deadline of 31 January the following year.
You cannot submit a late paper return followed by an on-time online tax return - HMRC will fine you according to the return it receives first. Find out more: paper tax returns. There is a system of penalties for mistakes on your tax return. What you're charged with will depend on whether HMRC thinks you have just been careless, or have purposely tried to lie about how much you earn. If you realise you made a mistake, you can correct your tax return for up to a year after the filing deadline via the HMRC online portal or via your software provider.
After this timeframe, you'll need to write to HMRC to explain the circumstances and request a change. For paper tax returns, you'll need to download a new return and mail it to HMRC with 'Amended' written on each corrected page.
Elsewhere, there are a number of help sheets for more specific topics like pension tax charges and student loan reductions. The Self-Assessment Helpline can offer general tax advice, and help with filling in your tax return. The service is open seven days a week, from 8am to 8pm.
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