The short answer
If a company director files a Self Assessment return late, HMRC charges an automatic £100 penalty, even if no tax is due. Daily penalties of £10 start after three months, and further charges of the greater of £300 or 5% of the tax due apply at six and twelve months, with separate penalties and interest for paying late.
Checked 5 November 2026. Rates for 2026/27.If a company director files a Self Assessment return late, HMRC charges an automatic £100 penalty, even if no tax is due. Daily penalties of £10 start after three months, and further charges of the greater of £300 or 5% of the tax due apply at six and twelve months, with separate penalties and interest for paying late.
Key takeaways
- The first late filing penalty is a flat £100, applied the day after the deadline even if you owe nothing.
- After three months, daily penalties of £10 can add up to £900.
- At six and twelve months, further penalties apply of the greater of £300 or 5% of the tax due.
- Late payment has its own penalties at 30 days, six months and twelve months, plus interest.
- You can appeal if you have a reasonable excuse, but you should act quickly.
Late filing penalties explained
The late filing penalty is separate from the tax itself. It is a charge for failing to submit the return on time. For the 2025-26 tax year, the deadline for online returns is 31 January 2027. If your return is not in by then, HMRC applies a penalty automatically.
| How late | Penalty |
|---|---|
| 1 day | £100 fixed penalty |
| 3 months | £10 a day for up to 90 days (up to £900) |
| 6 months | Greater of £300 or 5% of the tax due |
| 12 months | Another greater of £300 or 5% of the tax due |
In serious cases of deliberately withholding information, the penalty at 12 months can be higher. Check the current rules on GOV.UK because HMRC periodically updates its guidance.
Late payment penalties and interest
Late payment is a different matter from late filing. Even if you filed on time, you will be charged if you do not pay by the deadline. A penalty of 5% of the unpaid tax applies if you are 30 days late, another 5% at six months and another 5% at twelve months. Interest also runs from the day after the due date until you pay, at a rate HMRC sets and changes from time to time.
That means a late payment can cost more than the late return penalty if the tax bill is large. For a £10,000 bill, the 30-day penalty alone is £500.
Why directors are particularly exposed
Directors often have untaxed dividends that produce a Self Assessment bill, plus payments on account that fall at the same time. A late filing therefore tends to come with a late payment too. Many directors also assume that the company accountant has taken care of the personal return, when in fact it needs a separate submission.
If you want to understand why the January bill can be big, read our explainer on payments on account for company directors.
A worked example
Imagine a director owes £8,000 for 2025-26 and files and pays on 20 June 2027, almost five months after the deadline.
- £100 initial late filing penalty.
- Daily penalties of £10 start after three months, so around 50 days of penalties by 20 June, about £500.
- A 5% late payment penalty at 30 days, which is £400.
- The six-month penalties are avoided because the return and payment arrive before then.
- Interest from 1 February 2027 until the date of payment.
Altogether this is roughly £1,000 before interest, when a timely return and payment would have cost nothing extra. Had the director waited past six months, the greater of £300 or 5% would have been added for both late filing and late payment. This is why early filing is worth the effort.
Company penalties are separate from yours
Remember that the company has its own deadlines and penalties. Late statutory accounts at Companies House carry automatic fines, and a late CT600 Corporation Tax return carries its own HMRC penalties. These are charged to the company, not to you personally, although as a director you are responsible for making sure the filings happen. Our guide to limited company accounts and when they are due shows how those dates differ from your personal Self Assessment dates.
What counts as a reasonable excuse?
HMRC may cancel a penalty if you had a reasonable excuse that stopped you meeting the deadline. Examples include serious illness, a death in the family, a fire or flood, or a failure of HMRC’s online systems. Things that usually do not qualify include forgetting, not realising you needed to file, relying on someone else who did not do it or being busy with work.
You must explain what happened and how soon after it ended that you fixed the problem. The sooner you file and pay after the excuse ends, the stronger your case.
How to appeal a penalty
You can appeal online through your HMRC account or by sending a letter or form. As a general guide you should appeal within 30 days of the date on the penalty notice. Give a clear timeline and include supporting evidence such as medical letters or screenshots. If HMRC rejects your appeal, you can ask for an independent review or take your case to the tax tribunal. For smaller penalties, the cost and effort of a tribunal may not be worth it, so get advice on whether to proceed.
What to do if you are already late
- File the return as soon as possible. Penalties stop escalating once it is submitted.
- Pay as much of the bill as you can immediately to reduce interest and late payment penalties.
- Contact HMRC about a Time to Pay arrangement if you cannot pay in full.
- Consider an appeal if you have a genuine reason.
- Set up reminders and a process for next year so you do not repeat the problem.
How to avoid penalties altogether
Set an internal deadline well before 31 January, such as 15 January. Gather your dividend vouchers and salary records early, and keep a separate savings pot for your tax bill. Check our 31 January 2027 director checklist for a step-by-step plan. If you would rather not handle it yourself, an accountant can file on your behalf and monitor deadlines for you.
The bottom line
Self Assessment penalties escalate quickly, and the £100 charge applies even when no tax is due. File early, pay on time and speak to HMRC promptly if something goes wrong. A little organisation in December saves a lot of money later.
Frequently asked questions
How much is the late Self Assessment penalty?
£100 for filing even one day late, followed by daily penalties after three months and further charges at six and twelve months.
Do I pay a penalty if I owe no tax?
Yes. The £100 late filing penalty applies whether or not you owe any tax.
What is the late payment penalty?
5% of the unpaid tax at 30 days, six months and twelve months, plus interest from the due date.
Can I appeal a late filing penalty?
Yes, if you have a reasonable excuse, usually within 30 days of the penalty notice.
Does my accountant file my personal return automatically?
Not unless you have asked them to. The company accounts and your personal return are separate filings.
This article is general information, not personal tax or financial advice. Rules and rates change, so check GOV.UK or speak to an accountant about your circumstances. Rates shown are for 2026/27, last checked November 2026.