{"id":1399,"date":"2025-11-12T09:14:06","date_gmt":"2025-11-12T09:14:06","guid":{"rendered":"https:\/\/www.simplybusiness.co.uk\/\/knowledge\/self-assessment\/hmrc-penalties-for-self-assessment\/"},"modified":"2026-04-10T13:08:22","modified_gmt":"2026-04-10T13:08:22","slug":"hmrc-penalties-for-self-assessment","status":"publish","type":"knowledge","link":"https:\/\/www.simplybusiness.co.uk\/knowledge\/self-assessment\/hmrc-penalties-for-self-assessment\/","title":{"rendered":"HMRC penalties for late tax returns and late payment"},"content":{"rendered":"\n

We all do our best to avoid it, but sometimes small businesses and the self-employed can end up with a penalty from HMRC.<\/p>\n\n\n\n

HMRC penalties can be expensive and stressful \u2013 but, thankfully, sometimes they can be appealed. If you have a reasonable excuse, your penalty may be amended or waived after an appeal.<\/p>\n\n\n\n

HMRC issues penalties for late payment of Self Assessment tax, VAT, and corporation tax, as well as late filing, and making mistakes on your tax return. You can also be charged HMRC interest on late payment if you miss your tax bill deadline.<\/p>\n\n\n\n

Changes to late payment penalties<\/h2>\n\n\n\n

New late payment penalties were introduced for VAT and income tax Self Assessment following the 2025 Spring Statement. <\/p>\n\n\n\n

The table below highlights how much late payment penalties will go up for the 2025-26 tax year (and beyond). But the changes won’t apply to Self Assessment taxpayers until the January 2027 tax return deadline.<\/p>\n\n\n\n

Tax payment<\/strong><\/td>Penalties (2024-25 tax year)<\/strong><\/td>Penalties (2025-26 tax year onwards)<\/strong><\/td><\/tr>
Within 15 days<\/td>No penalty<\/td>No penalty <\/td><\/tr>
Within 16 to 30 days<\/td>2 per cent of tax owed at day 15<\/td>3 per cent of tax owed at day 15<\/td><\/tr>
31 days or more<\/td>A first and second late payment penalty applies (2 per cent of tax owed at day 15 plus 2 per cent of tax owed at day 30).

From day 31, penalties are calculated at a daily rate of 4 per cent a year on the balance due. <\/td>		A first and second late payment penalty applies (3 per cent of tax owed at day 15 plus 3 per cent of tax owed at day 30).

From day 31, penalties are calculated at a daily rate of 10 per cent a year on the balance due. <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

This is different to the penalties for late filing<\/a>, which we explain more about below. <\/strong><\/p>\n\n\n\n

In this article, we’ll cover:<\/p>\n\n\n\n