Guides / Late filing and payment penalties

Missed 31 January? Late filing and payment penalties

For 2025-26 returns. Checked against GOV.UK, October 2026.

Your 2025-26 return is due online by 31 January 2027 (paper by 31 October 2026), and any tax is due the same day. Miss either and HMRC charges penalties. Filing late and paying late are separate, so if you can't pay, file on time anyway and sort out the payment.

Filing late

How late	Penalty
1 day	£100
After 3 months	£10 a day, up to £900
After 6 months	5% of the tax due or £300, whichever is more
After 12 months	Another 5% of the tax due or £300, whichever is more

So a return that's a year late can cost £1,600 or more, before any late payment penalties. If you file a partnership return late, every partner gets a penalty.

Paying late

Tax still unpaid at	Penalty
30 days	5% of the unpaid tax
6 months	Another 5%
12 months	Another 5%

HMRC also charges interest on tax paid late. The late payment interest rate is the Bank of England base rate plus 4%. It has been 7.75% a year since 9 January 2026, and changes when the base rate changes.

Example

You file on time but owe £2,000 and pay it on 31 May 2027, 4 months late. You pay a 5% penalty at 30 days, which is £100. Interest at 7.75% for 120 days is about £51. Total extra: about £151.

You have to pay a penalty within 30 days of the date on the penalty notice. GOV.UK has a tool to estimate your penalty.

Registering late

If you needed a return for the first time and registered after 5 October, and you don't pay all your tax by 31 January, you may also get a "failure to notify" penalty. It's based on the tax still unpaid.

Can't pay? Set up a payment plan

If you can't pay in full, you may be able to set up a payment plan (often called Time to Pay) and pay in monthly instalments. Many people can do this online. You'll need your Unique Taxpayer Reference, UK bank details for a Direct Debit, and details of your income and spending.

HMRC usually asks for about half of what you have left each month after rent, food, bills and fixed costs.
There's no set time limit. It depends on what you owe and can afford.
Interest is still charged, so paying faster costs less.
If you have savings or assets, HMRC will expect you to use them first.

Contact HMRC as soon as you know you can't pay. Ignoring it can lead to debt collection, money taken from your wages or bank account, or court action.

Reasonable excuses and appeals

If you had a reasonable excuse, you can appeal against a late filing or late payment penalty. Examples GOV.UK gives:

your partner or another close relative died shortly before the deadline
an unexpected stay in hospital, or a serious or life-threatening illness
your computer or software failed while you were preparing your return, or HMRC's online services had problems
a fire, flood or theft stopped you completing your return
postal delays you couldn't have predicted
delays related to a disability or mental illness

Not reasonable excuses: not having enough money, finding HMRC's system too hard, not getting a reminder, or making a mistake on your return.

You must still file or pay as soon as you can. You usually have 30 days from the date of the penalty to appeal. You can appeal online, or by post on form SA370 (or SA371 for a partnership). If HMRC says no, you can ask for a review or go to the tax tribunal.

If you didn't actually need to send a return, you can ask HMRC to cancel the penalty. Check with our Do I need a tax return? checker.

Making Tax Digital and the new points system

People in Making Tax Digital for Income Tax get a different system: a penalty point for each missed deadline, a £200 penalty at 4 points, and different late payment penalties. It applies from the tax year you join MTD. Your 2025-26 return uses the penalties on this page, even if you joined MTD in April 2026.

GOV.UK's MTD penalties guidance also says that from April 2027 the new penalties will apply to everyone who sends a personal Self Assessment return. That doesn't change anything for 2025-26. See our Making Tax Digital guide.

Avoid penalties. The calculator works out your 2025-26 figures in a few minutes, so you can file before 31 January. You can also pay through your tax code if you owe under £3,000 and file online by 30 December 2026.

Work out my figures - free

Sources

General guidance, not tax advice. The example is rounded. HMRC works out the exact penalties and interest.