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Penalties, Fines, Interest


What happens when you get it wrong. There are penalties for not filing Accounts, Tax Returns, VAT Returns, PAYE Returns. There are further penalties for not paying the Tax when due. Most penalties get progressively higher the later the returns are. The information below gives you an idea of some of the penalties  This list is not exhaustive and you should check with HMRC and Companies House for the latest position and individual circumstances. 

Companies House 



How late are the accounts delivered


Penalty –
Private Company ( the rates for a PLC are higher and not covered here )


  • Not more than one month£ 150
  • More than one month but not more than three months £375
  • More than three months but not more than six months £750
  • More than six months £1500 

In addition where there was a failure to comply with filing requirements in relation to the previous financial year (and that the previous financial year had begun on or after 6th April 2008), the penalty will be double that shown in the table.


Last updated 6.3.2013

for more information see

Companies House Penalties 


HMRC - CIS Returns 

HMRC - Corporation Tax 


Late Filing of Corporation Tax Return

Automatic flat-rate penalties for late Company Tax ReturnsIf you file your Company Tax Return late, your company or organisation will be charged a flat-rate penalty of £100. HMRC will charge a further £100 penalty if you file your return more than three months late.

If your Company Tax Return is late for three or more accounting periods in a row, the initial flat-rate penalty increases to £500 with a further £500 charged if you file your return more than three months late.

Additional penalties for very late Company Tax ReturnsIf you don't file your Company Tax Return by the later of:

  • 18 months from the end of your Corporation Tax accounting period
  • your filing deadline
HMRC may charge your company or organisation further penalties from that date.

These penalties will be on top of the flat-rate penalty or penalties you've already been charged. These additional penalties are known as tax-related penalties because they are related to the amount of Corporation Tax your company or organisation owes. They are calculated as follows:

  • where a return is filed between 18 months and 24 months after the end of your company's accounting period: 10 per cent of any unpaid Corporation Tax
  • where a return is still not filed 24 months after the end of your accounting period: a further 10 per cent of any unpaid Corporation Tax
Here, the amount of unpaid Corporation Tax is the amount due that you didn't pay by the date your company first became liable to a tax-related penalty

Last updated 6.3.2013

For more information see

HMRC Late CT Penalties 


Late payment Interest for all main taxes

Late payment 3%

Last updated 6.3.2013

For more information see

HMRC Interest Rates 


HMRC - Self Assessment 


Late filing of Self Assessment Tax Return

Penalties for missing the tax return deadlineLength of delay

Penalty you will have to pay

1 day late

A penalty of £100. This applies even if you have no tax to pay or have paid the tax you owe.

3 months late

£10 for each following day - up to a 90 day maximum of £900. This is as well as the fixed penalty above.

6 months late

£300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.

12 months late£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.
These are as well as the penalties above.


Late payment of Tax

Penalties for paying lateLength of delay

Penalty you will have to pay

Thirty days late

5% of the tax you owe at that date

Six months late

5% of the tax you owe at that date. This is as well as the 5% above.

Twelve months late

5% of the tax unpaid at that date. This as well as the two 5% penalties above


Last updated 6.3.2013

for more information see

HMRC SA Penalties 


Late payment Interest for all main taxes

Late payment 3%

Last updated 6.3.2013

For more information see

HMRC Interest Rates


HMRC - PAYE


Penalty charges for late monthly and quarterly PAYE payments Note: The first failure to pay on time does not count as a default.

No. of defaults in a tax year

Penalty percentage

Amount to which penalty percentages apply

1-3 1%

Total amount that is late in the tax year (ignoring the first late payment in that tax year)

4-6 2%

7-9 3%

10 or more 4%

Additional penalties for monthly and quarterly payments over six months late  If you have still not paid a monthly or quarterly amount in full, after six months you may have to pay a penalty of 5 per cent. A further penalty of 5 per cent may be charged if you have not paid after 12 months. These penalties may be charged in addition to the penalties for monthly and quarterly payments described in the previous section and apply even where only one payment in the tax year is late.

End of year adjustmentsYou may be charged a late payment penalty if you pay less than is actually due. This applies even where you pay roughly the right amount each month or quarter and then make an end-of-year adjustment. You should therefore make sure you pay on time and in full each month or quarter, rather than estimate the amounts you need to pay.

However if you pay an adjustment after the end of the year under a special arrangement such as applying the Intermediaries' rules (these are often referred to as IR35) or a formal modified PAYE arrangement known as Employment Procedures Appendix 6, HMRC will not charge late payment penalties, providing the terms of the arrangement are kept.

To avoid receiving a penalty you must make certain that you pay the right amount on time each month or quarter.

Amounts due annually or occasionallyYou may have to pay a penalty of 5 per cent of the amount that is late if you have not paid the full amount by the date known as the 'penalty date'. There's more information about the different 'penalty dates' later in the section.

You may have to pay an additional 5 per cent penalty if you have still not paid the full amount within 6 months of the due date and a further 5 per cent penalty if you have still not paid the full amount within 12 months of the due date.



Last updated 6.3.2013 for more information see 

HMRC Late PAYE Penalties


Late payment Interest for all main taxes

Late payment 3%

Last updated 6.3.2013

For more information see

HMRC Interest Rates


HMRC - RTI

HMRC - VAT

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