Around 1.1m of us missed the January 31 deadline to file our self-assessment tax returns for the 2023/24 tax year. For each person, this means at least a £100 penalty and potentially additional charges if the return continues to not be filed or the tax due paid for a longer period.
The £100 penalty is levied whether there was any tax to pay or not. It is simply for missing the deadline for filing the self-assessment return itself. If you had tax to pay though, you could also face interest charges if you also haven’t paid the bill on time.
Sole traders and partners in a partnership who contacted HMRC for help with the Basis Reform Period before December 31, 2024, should not receive a penalty as this change will make calculating their tax due more complex.
The ICAEW has been advised by HMRC that anyone in this position would have until February 28 to file their return using provisional figures without incurring a penalty. But the return should be updated when they have the correct figure and any tax due originally by January 31 that remains unpaid would face interest charges from February 1.
What other reasons would HMRC accept for late filing?
If you have a genuine reason for missing the deadline, then you should appeal any penalty. For example, if someone close to you has died – perhaps a partner or parent – then you would benefit from some leniency.
Other reasonable excuses would include:
- You had an unexpected stay in hospital that prevented you from dealing with your tax affairs.
- You had a serious or life-threatening illness.
- Your computer or software failed while you were preparing your online return.
- Issues with HM Revenue and Customs (HMRC) online services.
- A fire, flood or theft prevented you from completing your tax return.
- Postal delays that you could not have predicted.
- Delays related to a disability or mental illness you have.
- You were unaware of or misunderstood your legal obligation.
- You relied on someone elseto send your return, and they did not.
Source: Gov.uk
However, these wouldn’t be considered reasonable excuses, and you wouldn’t be able to challenge the penalty if:
- Your cheque bounced or payment failed because you did not have enough money.
- You found the HMRC online system too difficult to use.
- You did not get a reminder from HMRC.
- You made a mistake on your tax return.
Source: Gov.uk
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If you’ve missed the deadline for filing your self-assessment and have received a penalty, then please get in touch as soon as possible
