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By Missing a tax deadline in the UK can be costly — and many businesses don’t realise how quickly HMRC penalties can add up. Whether you’re a sole trader, limited company, freelancer, or landlord, filing late can trigger automatic fines, interest charges, and potential compliance investigations.
At TT Accountancy Services (TTAS), we help UK businesses stay ahead of HMRC deadlines, avoid unnecessary penalties, and maintain smooth financial operations. Here’s what you need to know about late filing penalties in 2025 and how to protect your business.
Why HMRC Issues Penalties
HMRC expects businesses to file tax returns and payments on time so they can correctly assess tax liabilities. Late filing creates delays and inaccuracies — so penalties are designed to encourage compliance.
The good news? With the right systems and expert support, these penalties are entirely avoidable.
1. Self-Assessment Late Filing Penalties (2025/2026)
If you’re self-employed, a landlord, or run a small business, you must file a Self-Assessment tax return by:
- 31 January (online filing for the previous tax year)
- 31 October (paper filing)
Missing these deadlines results in:
Immediate Penalty
- £100 fixed fine — even if you owe no tax.
After 3 Months
- Daily penalties of £10 per day, up to £900.
After 6 Months
- Additional penalty of 5% of unpaid tax or £300 (whichever is higher).
After 12 Months
- Another 5% or £300 — and in serious cases, penalties can be up to 100% of the tax due.
Full HMRC guidance: https://www.gov.uk/self-assessment-tax-returns/penalties
2. Limited Company (Corporation Tax) Deadlines and Penalties
Limited companies must file:
- Company Tax Return (CT600)
- Statutory annual accounts
Corporation Tax Return Deadline:
- 12 months after the end of your accounting period.
Late Filing Penalties:
- 1 day late → £100
- 3 months late → £100
- 6 months late → HMRC estimates tax owed → 10% surcharge
- 12 months late → Another 10% surcharge
Corporation Tax penalties (HMRC):
https://www.gov.uk/company-tax-returns/penalties
3. VAT Return Late Filing Penalties (2025/26)
Under the VAT Late Submission Penalty System, HMRC uses a points-based method.
Penalties Include:
- Accumulated penalty points
- £200 fine when points reach the threshold
- Late payment interest
- Additional late payment penalties (2%–4%)
VAT penalty system explained:
https://www.gov.uk/guidance/vat-penalties-and-appeals
4. PAYE & Payroll Penalties
If your business runs payroll, you must submit Full Payment Submissions (FPS) and Employer Payment Summaries (EPS) on time.
Late or incorrect submissions trigger:
- Monthly penalties from £100 to £400, depending on staff size
- 5%–10% additional penalties for late payments
PAYE penalties: https://www.gov.uk/paye-for-employers/paye-penalties
5. Accounts Filing Penalties (Companies House)
Limited companies must file their annual accounts to Companies House by the deadline.
Late Filing Penalties:
- Up to 1 month late → £150
- 1–3 months late → £375
- 3–6 months late → £750
- 6+ months late → £1,500
Penalties double if you file late two years in a row.
Companies House penalties: https://www.gov.uk/prepare-file-annual-accounts-for-limited-company
Why You Shouldn’t Ignore HMRC Deadlines
Late filing can lead to:
- Higher tax bills due to penalties
- Cash flow problems
- Risk of HMRC inquiries
- Damage to business credibility
- Increased administrative stress
In some cases, repeated late filing can even trigger compliance investigations, which are costly and time-consuming.
How TT Accountancy Services Helps You Avoid Penalties
At TTAS, we help businesses across London stay compliant and stress-free with proactive tax management.
Our services include:
✔ Deadline tracking and reminders
✔ Full tax return preparation (Self-Assessment, VAT, Corporation Tax)
✔ Real-time bookkeeping and payroll
✔ Digital records setup (MTD compliant)
✔ HMRC correspondence handling
✔ Penalty appeal support when necessary
We ensure you never miss a deadline — and never pay a penalty you could’ve avoided.
Contact us today: https://ttaccountancy.com/contact
HMRC penalties can be expensive, stressful, and damaging to your business — but with proper planning, they’re completely avoidable.
Working with a professional accountant like TT Accountancy Services gives you the peace of mind that every deadline is met, every form is accurate, and every submission is fully compliant with HMRC standards.
Stay compliant. Stay organised. Stay ahead — with TTAS.
