UK RESIDENT LANDLORDS

Late filing and late payment penalties

Penalties if you miss the tax return deadline

If you miss the deadline, the longer you delay, the more you’ll have to pay. So it’s important to send your tax return to HMRC as soon as you can.

If, for example, you send your tax return back six months late, you’ll be asked to pay the first three penalties shown in the table below.

All of the penalties shown in the table below will be charged even if you have no tax to pay or have paid the tax you owe.

Penalties for sending your tax return late

Length of delayPenalty you will be asked to pay
1 dayInitial £100
3 months£10 each day - up to maximum of £900.
6 months£300 or 5% of the tax due, whichever is the higher
12 months£300 or 5% of the tax due, whichever is the higher.
In serious cases you may be asked to pay up to 100% of the tax due instead.

The deadlines and penalties above also apply to each partner in a partnership.

Interest and penalties if you don’t pay on time

If you miss the deadline, the longer you delay, the more you’ll have to pay. So it’s important to still send your payment to HMRC as soon as you can.

If, for example, you pay more than six months late, you’ll be asked to pay the first two penalties shown in the table below.

Penalties for paying late

Length of delayPenalty you will be asked to pay
30 days5% of the tax unpaid at that date
6 monthsA further 5% of the tax unpaid at that date
12 monthsA further 5% of the tax unpaid at that date
In serious cases you may be asked to pay up to 100% of the tax due instead.

Interest charges if you pay late

You will have to pay interest on all outstanding amounts, including any unpaid penalties, until payment is received

© Landlords Tax Services Ltd 2016 All Rights Reserved - In an article such as the one on this page we can only give brief general guidance and cannot cover all situations. This guidance may not cover all your personal circumstances and so you should not rely on it. Before taking action or not, always do your own specific research and seek appropriate professional advice which takes into account your personal circumstances, with the full facts of the case and all documents to hand. Neither Maurice Patry F.C.A. nor Landlords Tax Services Ltd can be held responsible for the consequences of any action or the consequences of deciding not to act.