If you cannot afford the tax, speak to HMRC urgently
If your bill is correct but you can’t afford it, contact HMRC ASAP as you may be able to avoid late payment penalties by making an agreement to spread your payments over a period of time – See this below for more information. (Also see our free tax code calculator to make sure you are on the correct tax code).
You need a reasonable excuse for not paying your taxes on time. This is usually something unexpected or out of your control that has prevented you from fulfilling a tax liability. For example:
- Your partner or another close relative died shortly before the end of the tax return or the payment deadline.
- You had an unexpected hospitalization that prevented you from going through your tax affairs.
- You have had a serious or life-threatening illness.
- Your computer or software failed shortly before or while preparing your online return.
- Problems with HMRC’s online services.
- A fire, flood or theft prevented you from completing your tax return.
You will be fined £ 100 for missing the deadline for filing – plus additional penalties for late payment of tax
If you fail to submit your return on time, you will be charged a penalty of £ 100 – even if no tax is payable.
Additional fines of £ 10 per day will be imposed after three months, up to a maximum of £ 900. After six months you will receive an additional penalty of 5% of tax owed or £ 300 (whichever is greater), repeated after 12 months.
There are also additional penalties for late payment of the tax – these are charged at 5% of the unpaid tax after 30 days, six months and 12 months. In addition, taxes that have not yet been paid are subject to interest at 2.6%.
The government provides an online tool that can be used to calculate how much you will have to pay in penalties and interest if you miss the deadlines.
You can contact HMRC directly for more information
The government provides help sheets and video tutorials for filing your tax return.
You can also contact HMRC directly for advice by calling the hotline on 0300 200 3310. It is open on workdays from 8 a.m. to 8 p.m., on Saturdays from 8 a.m. to 4 p.m. and on Sundays from 9 a.m. to 5 p.m. You can also get general help from HMRC customer support at Twitter.