Missed the tax return deadline?

HMRC estimates that hundreds of thousands of taxpayers fail to complete their Self Assessment by the 31st January deadline each year. If you ever find yourself in this situation you may be worried about what's going to happen to you and what action you should take next.

So how can you still get your tax return completed even after the deadline, and what steps can you take to avoid further penalties?

Don't panic!

The first thing to remember is that filing your tax return a couple of days late will earn you nothing worse than a £100 fine (although HMRC will also charge you interest if you have failed to pay your tax on time too). You won't be arrested, or automatically face a visit from a tax inspector, just because you've missed the deadline!

But don't get lulled into a false sense of security. Remember that the longer you take to submit your Self Assessment tax return after the 31st January deadline, the more fines you will incur - so that initial £100 penalty may start getting larger! HMRC may also start to charge additional penalties the longer you wait to pay your tax too, so the quicker you submit your tax return and pay your tax bill, the better.

Have you got a reasonable excuse?

There may be a very good reason why you haven’t filed your tax return on time, such as a serious illness, or a death in your immediate family.

HMRC call this a 'reasonable excuse' for filing late, and you should tell them what has happened as soon as possible. Don’t wait until they send you a penalty notice. Fill in and submit a claim form to let them know.

Examples of other reasonable excuses would include:

  • a computer breakdown as you tried to file
  • a system failure on HMRC's part
  • your records being destroyed in a fire or flood so near to the deadline that you couldn't recreate them
  • receiving your online activation code late despite having applied for it in plenty of time

What if your accountant didn't file your tax return?

If you relied on your accountant to complete your Self Assessment but they failed to prepare and submit your tax return on time, you may think this is a reasonable excuse for missing the deadline. Unfortunately this is not the case, as HMRC still holds you responsible for your own tax affairs even if you have engaged an accountant. If you're looking for a more reliable accountant take a look at our directory of accountants who include FreeAgent as part of their service.

You also won’t avoid a fine because your dog ate your tax return or because you’ve been “travelling the world trying to escape from a foreign intelligence agency” - both of which are actual excuses that people have submitted to HMRC for not filing their tax return on time.

File and pay as soon as you can to avoid extra costs and scrutiny

The longer you leave it to file your tax return and pay your tax, the more the interest and penalties will go up. But taxpayers who persistently file and pay late are also more likely to attract unwelcome attention from HMRC inspectors, as they may suspect your records are not up to scratch. If that turns out to be the case, HMRC can also levy penalties for this, on top of the ones imposed for filing and paying your tax late.

Remember, if you're a sole trader or director of a Limited Company, you can still complete and file your Self Assessment tax return directly from within FreeAgent even after the deadline has passed.

Put systems in place for next year

If you missed this year’s tax return deadline, make sure you don't make the same mistake next year! FreeAgent’s unique Tax Timeline feature shows all your upcoming tax deadlines and how much you owe so you’ll never have to miss a Self Assessment deadline again.

Take a closer look at FreeAgent’s easy-to-use Self Assessment software to see how effortless filing your tax return on time can be.

Got questions?