UK Tax Returns – Late Filing Penalties

Jane Cooper 31 December, 2015

With a month to go before the deadline for the electronic submission of 2015 UK tax returns here are a few words to concentrate your thoughts if you have not yet lodged your 2015 UK return.

The penalties for filing a tax return late can be significant, with penalties of £1,600 or more a possibility if you delay lodging your tax return for a significant period.

Here’s how that total can accrue in respect of your 2015 UK tax return:

  • Lodge after the 31st of January, 2016 – £100
  • Lodge on or after the 1st of May, 2016 – £10 per day, up to a maximum of £900 if not lodged before the end of July
  • Lodge on or after 1st of August, 2016 (ie you are 6+ months late) – an additional £300
  • Lodge on or after 1st of December, 2017 (ie you are 12+ months late) – an additional £300

It is possible for a tax return request to be withdrawn, or for late filing penalties to be appealed if there is a “reasonable excuse.”

Note: The penalties for lodging 6+ months and 12+ months late are the greater of £300 and 5% of the tax due.

Late payment penalties can also become payable if tax owing is not paid to HMRC – as discussed here.

GM Tax has had success in having penalties of £1,600 reduced or removed for our clients – but a far less risky option is to lodge the tax return before the due date, and to avoid any penalties arising.

If you have a need to lodge a UK tax return please feel able to contact us for a free initial discussion about how we might help, and for details of our fixed fees.

We look forward to hearing from you.