What penalties apply if tax is paid late? What are late payment penalties? Can you appeal late payment penalties?

This is a freeview 'At a glance' guide to penalties for late payment of tax.

At a glance

If tax is paid late, HMRC can charge a penalty for failure to make payments on time.

Late payment penalties under schedule 56 FA 2009 apply in respect of the following taxes:

Penalties are set as follows:

Late payment Penalty
30 days late 5% of tax outstanding at that date
6 months late 5% of tax outstanding at that date
12 months late 5% of tax outstanding at that date

 

Time to pay agreements

 Special reduction

Appeal 

Sch 56 FA 2009 provides for the appeal process and it is advisable first off to ensure that any penalty charged has been made correctly according to the legislation.

See: How to appeal a tax penalty and Appeals: Grounds for appeal toolkit for detailed guidance and hints and tips.

Recent changes

Covid-19 measures: see COVID-19 Tracker

Other changes in 2021-22 and earlier: see Late Filing Penalties: Subscriber guide

Small print

Legislation: Schedule 56 FA 2009


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