What are the Personal Tax Return Penalties?

Personal Tax Return Penalties

HMRC will issue personal tax return penalties for late filing and late payment of any tax liabilities due. How are these penalties calculated?

As Chartered Accountants and Tax Advisors, we strongly recommend that you file and pay your personal taxes on time. However, should this not be possible, below are the penalties you can expect to be issued by HMRC.

What are the personal tax return penalties for filing 1 day late?


Personal tax returns are due to be filed by the 31st January each tax year.

Should this deadline be missed by 1 day the penalty is £100.

What are the penalties if a tax return is filed 3 months late?


After 3 months a daily penalty of £10 per day is issued. This penalty is subject to a maximum of £900.

This penalty is on top of the £100 penalty issued above.

What are the personal tax return penalties for filing over 6 months late?


A further penalty of 5% of the tax liability or £300 (whichever is greater) is issued after 6 months.

This penalty is on top of the penalties issued above.

What are the penalties if the tax return is filed over 12 months late?


A further penalty of 5% of the tax liability or £300 (whichever is greater) is issued after 12 months.

This penalty is on top of the penalties issued above.

How much will my penalty be for filing a tax return over 12 months late?


Penalties for each late filing period must be included when calculating the total penalty due. For example if a tax return was filed over 12 months late the penalty would be as follows:

£100 penalty is issued for being 1 day late
£900 penalty is then issued as the maximum penalty after 3 months
£300 penalty is then issued for being over 6 months late (or 5% of tax due)
£300 penalty is then added for being over 12 months late (or 5% of tax due)

The total penalty for late filing of the tax return is £1,600.00. This penalty could be even higher depending on how much tax is actually due.

What are the personal tax penalties for late payments?


Personal tax payments are due to be paid by 31st January each tax year. Should this deadline be missed the following penalties will arise:

Over 30 days late – a penalty of 5% of the tax unpaid is issued.
After 6 months – a further penalty of 5% of the tax unpaid is issued.
After 12 months – a further penalty of 5% of the tax unpaid is issued.

How much will my penalty be if my personal tax liability is paid over 12 months late? 


For example if a personal tax liability of £10,000 was paid 14 months late the penalty would be as follows:

The payment is over 12 months late, as a result it incurs all 3 late payment penalties of 5% each. This gives a total percentage penalty of 15%.

The resulting late payment penalty would be £1,500. (Calculated as tax unpaid of £10,000 multiplied by the penalty of 15%).

How to calculate both personal tax return late filing and late payment penalties?


To estimate how much your penalties will be you can use this calculator provided by HMRC.

A summary on personal tax penalties

Personal tax penalties increase substantially the longer you take to file and pay any taxes owed. Don’t delay any longer!

See our blog, 5 steps on how to minimise your personal tax penalties.

As Chartered Accountants we can assist you in successfully putting your personal tax affairs back on track and minimising the penalties. Please contact the Darlington office on 01325 508688 or the Bishop Auckland office on 01388 448208 and speak with a qualified accountant. Alternatively use our Quote page and we will respond typically within 1 working day.

DISCLAIMER – Please note that the content contained in this article is for general information only and is not a substitute for professional advice – read our full disclaimer