The cost of missing your SAT return deadline
Posted on 20th December 2024
This year an estimated 1.1million people missed the 31 January deadline for self-assessment tax returns for the 2022/23 tax year.
HMRC says that more than 11.5million of an expected 12.1million people managed to submit their returns on time. However, almost 33,000 filed their returns between 11pm and midnight, which must have been a tense time for them.
Those who missed the deadline paid penalties:
an immediate £100 fixed penalty which applies even if there is no tax to pay or if the tax due is paid on time
after three months they paid additional daily penalties of £10 per day, up to a maximum of £900
after six months they paid a further penalty of 5% of the tax due or £300, whichever was greater
after 12 months, another 5% or £300 charge, whichever was greater.
Interest is also charged on late tax payments.
Here’s what will happen if you‘re late with your self assessment tax (SAT) return and payments for the 2023/24 tax year.
Late filing penalties
Even if you don’t owe any tax, you will normally receive a fine on 1 February if you don't have a valid reason for a late submission, and further penalties will follow.
When you submit your tax return the penalties will stop. However, you must still pay additional fines if you’re late paying the tax due on 31 January.
Late payment penalties
You pay penalties if you don’t pay your tax bill on time. This includes your payments on account due on 31 January and 31 July, unless you're paying through PAYE.
These charges apply in addition to any charges for a late tax return.
You can calculate your potential penalties using the gov.uk calculator.
Changes from 2026
Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) rules will soon apply. MTD for ITSA affects people with business or property income over £50,000 per year from 6 April 2026. It extends to those with business and property income over £30,000 in 2027.
The new arrangements mean that late self-assessment tax returns will lead to penalty points before you receive a financial penalty. You will receive a point each time you miss a submission deadline. When you reach a threshold you will pay a £200 penalty. Once you reach the threshold further penalties apply for each subsequent point, but the points themselves don’t increase.
The new penalty thresholds:
|
Submission frequency |
Penalty threshold |
|
Annual |
2 points |
|
Quarterly (including MTD for ITSA) |
4 points |
|
Monthly |
5 points |
Points will remain for two years before being removed from your record unless you reach the threshold again. To reduce your points to zero you must submit your returns and make your payments on time for a compliance period of 12 months, for example.
|
Number of days late |
Penalty |
|
Up to 15 days |
No penalty. |
|
16 to 30 days |
2% of the outstanding balance on the 15th day. |
|
More than 30 days |
2% of the outstanding balance on the 15th day plus 2% of the outstanding balance on the 30th day plus 4% per annum on the unpaid balance from the 31st day. |
To avoid some or all of these penalties you can enquire about a Time to Pay arrangement with HMRC.
Please get in touch if you would like advice about your self-assessment tax return or planning your tax payments.
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