Date posted: 26th Mar 2026
If your 2024/25 tax return has not been submitted to HMRC, daily penalties will start to accrue from 1 May 2026, on top of the initial £100 late filing penalty and any late payment charges.
The £10 daily penalties will apply for each day that the tax return remains unsubmitted from 1 May 2026 for up to 90 days (a maximum of £900).
After that, if the tax return still remains outstanding on 1 August 2026, then a further penalty will be charged based on the higher of £300 or 5% of the 2024/25 tax due, with similar penalties applying the longer that the delay continues.
These penalties are in addition to late payment penalties and interest charged on any tax due. With HMRC late payment interest rates relatively high, the sooner you bring your affairs up to date, the cheaper it will be overall.
It may be that you have a reasonable excuse for the late filing of the tax return; if so, then you can appeal against penalties issued by HMRC. However, be aware that what HMRC regard as a reasonable excuse may not be the same as you, so professional advice may be needed.
As ever, if you have any queries, please contact us.
