How to Avoid Penalties During Self-Assessment Tax Returns
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How to Avoid Penalties During Self-Assessment Tax Returns
The New Year has begun which means the clock is ticking for getting in your self-assessment tax return submission. Failure to complete your tax return for the 31st of January deadline will result in hefty late filing fines, and avoiding a last-minute rush means filers can ensure everything has been accounted for.
At BCS Accountants, this month’s blog looks at how to avoid penalties when doing your self-assessment tax returns. For more information, contact us on 01524 824111.
Late Filing Penalties
If you miss the 31st of January deadline, you will automatically be fined £100 as a late filing penalty. If your return is 3 months late, you will be fined £10 a day for 90 days. This can result in a maximum penalty of £900 in late repayment penalties.
If you are 6 months late, you will incur a further penalty of 5% of the tax due, or £300 if greater, will be added as a late payment penalty. If you are 12 months late, a further penalty of 5% of the tax due or £300, if greater, will be added.
However, if you have a reasonable excuse for late filing, you may be able to appeal the penalties.
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How to Avoid Late Filing Penalties
To ensure you meet the self-assessment tax return deadline, there are a number of documents you need:
- A P60 from your employer showing your income and the tax paid on it
- A P45 if you have left a job within a tax year
- A P11D or P9D detailing your benefits and expenses
You will also need to provide details of any income you may have, including bank accounts, dividends and investments.
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Respond to HMRC Letters or Notices Promptly
Ignoring HMRC can result in the quick escalation of penalties. HMRC will send reminders, compliance checks and payment requests via your Personal Tax Account and post. Responding on time gives you a chance to correct issues or appeal a fine. Delays or failure to act often results in further penalties or enforcement.
Understand What Triggers HMRC Investigations
HMRC investigations are triggered when your tax return contains inconsistencies or missing information. Filing accurate and consistent returns alongside keeping good records helps reduce the risk of investigation.
HMRC can go back 20 years if they believe fraud may have been committed.
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Get Professional Tax Advice
When your tax affairs involve complex situation, a qualified tax adviser can prevent costly mistakes. In 2025, changes in allowances and reporting obligations still continue to cause confusion. A tax specialist can help ensure your return is accurate and compliant with current rules.
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Contact BCS Accountants
For accounting advice, contact our team at BCS Accountants. We are based near Carnforth, but cover Morecambe, Lancaster and Kendal. Call us on 01524 824111. Alternatively, send us a message via our contact form and we’ll be in touch.
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Contact BCS Accountants
Address:
BCS Accountants & Tax Consultants
Care of – TRW Accountants
95 King Street
Lancaster, LA1 1RH
Contact Details:
Tel: 01524 824111
Fax: 01524 825327
Email: enquiries@b-c-s.co.uk
