What Happens If You File Tax Returns or Company Accounts Late?

Who this guide is for

This guide is for sole traders, landlords, limited company directors, VAT-registered businesses and employers who have missed or may miss a UK filing deadline.

Self Assessment late filing

HMRC can charge penalties if a Self Assessment tax return is late.

The penalties can increase the longer the return remains outstanding. Interest and late payment penalties may also apply if tax is unpaid.

If you disagree with a penalty or had a reasonable excuse, you may be able to appeal.

Companies House accounts late filing

Limited companies can receive automatic late filing penalties if annual accounts are filed late with Companies House.

For private companies, the penalty can increase depending on how late the accounts are. Penalties can double if accounts are filed late in 2 successive financial years.

Late filing can also damage the company's compliance record.

Corporation Tax late filing or payment

Corporation Tax has separate payment and filing deadlines.

For most small companies, Corporation Tax payment is usually due 9 months and 1 day after the end of the accounting period, while the Company Tax Return is normally due 12 months after the accounting period.

If payment is late, HMRC may charge interest. If the Company Tax Return is late, penalties may apply.

VAT late returns and payments

VAT uses a penalty points system for late VAT returns. Once a business reaches the penalty point threshold, a financial penalty can apply.

Late VAT payments can also create late payment penalties and interest.

Even nil VAT returns can matter if they are submitted late.

Payroll late reporting

Employers usually need to report payroll information to HMRC on or before payday through RTI.

Late or incorrect payroll reporting can create HMRC notices, penalties and problems for employees' tax records.

What to do if you are already late

If you have missed a deadline:

1. File the missing return or accounts as soon as possible.
2. Check whether tax is also unpaid.
3. Pay what you can.
4. Contact HMRC if you cannot pay in full.
5. Keep evidence if there was a reasonable excuse.
6. Ask an accountant to review the position.

Do not wait until every record is perfect if a return is already overdue. Get advice on the best next step.

Common mistakes

A common mistake is thinking that no tax due means no penalty. Late filing penalties can still apply even if the tax is low or nil.

Another mistake is paying tax but forgetting to file the return.

Some directors also file Companies House accounts and assume HMRC has been dealt with. Companies House and HMRC filings are separate.