Do you need to complete a self assessment tax return? What are the penalties for late submission?

The deadline for submitting your 2018/19 self assessment tax return is midnight on 31 January 2020.

You need to complete a tax return if you:

  • or your partner received Child Benefit and either of you have an annual income of more than £50,000
  • received more than £2,500 in other untaxed income, for example:
    – from tips or commission
    – money from renting out a property
    – income from Savings, investments & dividends
    – from foreign income
  • are a self-employed sole trader and earned more than a £1,000
  • are a partner in a business partnership
  • are an employee claiming expenses in excess of £2,500
  • have an annual income over £100,000.

If you completed a self assessment tax return last year but didn’t have any tax to pay, you will still need to complete a 2018/19 tax return unless HMRC has written to you to say it is not required.

If you are still unsure if you need to file a tax return you can use the following link

Penalties for late submission

If you are late in submitting your tax return the following penalties will apply:

  • an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
  • after 3 months, additional daily penalties of £10 per day may be charged, up to a maximum of £900
  • after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater; and
  • after 12 months, another 5% or £300 charge, whichever is greater.

There are also additional penalties for paying late, which are 5% of the tax unpaid at 30 days, 6 months and 12 months. Interest will be charged on all late payments.

Make a New ‘Financial’ Year Resolution

If you prefer not to have an anxious January next year, the earlier you can provide us with your tax information the earlier you can have an up to date position regarding your tax affairs. This will give you time to plan you finances and reduce or increase your savings for your tax liability.

If you like any further advice or assistance in completing your tax return please get in touch.


Coronavirus/COVID-19: Latest Update 26 June 2020 – Summary of Finance and Business Measures

This article summarises the business support measures the UK and Scottish governments, along with other NGBs and organisations have introduced as a result of the COVID-19 outbreak. Last updated: 26  June: Local Grants Deadline 28 June 2020; Dairy Response Fund;  For each measure we have listed the date of the latest change. Simply click on […]


VAT Domestic Reverse Charge for the Construction Industry – What You Need to Know

HMRC have announced that the introduction of the VAT Domestic Reverse Charge (reverse charge) for the construction industry has been postponed again. Originally, the reverse charge was to be implemented on 1 October 2019, but was pushed back 12 months until 1 October 2020. The government has now announced a further five-month delay to its […]