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Missed the Self Assessment deadline? Here's what to do

August 25, 2021If you're self-employed, a sole trader, a business partner, or a director of a small business or limited company, you'll need to get familiar with a Self Assessment tax return, especially the deadlines for submission and payment.But what exactly is a Self Assessment tax return? Tide's Caroline Wire writes "Self Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax. You must file an online Self Assessment tax return if, for example, you are self-employed as a sole trader and earned more than £1,000 (before taking off any expenses you can claim tax relief on). If you did not send an online return last year, you’ll first need to register for Self Assessment with HMRC."If you 've missed this critical deadline, don't panic – you're not alone. When the Self Assessment deadline for 2019/2020 passed back at the end of January 2021, around 1.8 million people still needed to file. It's not unusual for people to miss the January deadline – what matters is what you do next.To reduce the risk of higher fines and elevated stress levels ,we've put together a short and simple guide of what to do if you've been unlucky enough to miss the Self Assessment deadline.

What do I do if I've missed the Self Assessment deadline?

If you haven's started your Self Assessment form yet, we recommend making a start on it as soon as possible – even if the deadline is long gone. Make sure you have all the necessary information to hand, including:

InvoicesRecords of your incomeYour National Insurance numberAny expenses that are linked to your self-employment, such as allowable expenses or capital allowancesThe total amount you are contributing to your pension this year. Your Unique Taxpayer Reference number (UTR), which can be found on previous tax returns of paperwork you've received from HMRC

Once you've completed your Self Assessment form, you can send it off either online or by post.

When is the Self Assessment deadline?

If you're looking to file you Self Assessment form online, you'll need to do so by midnight on 31st January. This is also the deadline for paying your tax bill too, so even if you've filed your Self Assessment on time, you still may be fined for late paymentYou can also file your Self Assessment by post, but the deadline instead falls on 31st October – three months earlier than filing online. However, if you’re a trustee of a registered pension scheme or a non-resident company, the deadline for paper submission is extended until 31st January.Since filing online gives you much more time to file (and is a lot better for the environment), we recommend filing online if you can. There's no need to wait until January – register as soon as you can.

What if I missed the deadline due to circumstances beyond my control?

Sometimes things happen that are beyond your control, and can happen when you have a very important tax submission to make. If this is the case for you, you can appeal against a penalty if you have what HMRC deems to be a reasonable excuse.Reasonable excuses include:

Experiencing a serious illness just before the Self Assessment deadlineAn unexpected hospital stayThe death of a close relative or a loved oneTechnical difficulties with the HMRC portalUnexpected postal delaysA fire, flood or theft preventing you from submitting your tax return

What isn't a reasonable excuse?

Unfortunately, not every reason for failing to submit your Self Assessment tax return is enough to see any penalty charged dropped. These examples would not be considered a reasonable excuse by HMRC: 

You relied on someone else to submit your tax return for you and they didn'tYour method of payment bounced because you didn't have enough moneyYou found submitting your Self Assessment too difficultYou did not get a reminderYou made a mistake on your tax return

What are the penalties for missing the Self Assessment deadline?

If you miss the first Self Assessment deadline, HMRC will fine you a late filing penalty of £100 if your tax return is up to three months late. If you've still not submitted your form after three months, you'll be charged £10 a day for up to 90 days unless you file within that time, meaning that if you file after three months and one day, you'll be fined a total of £110. Allowing the full 90 days to pass can see you faced with an eyewatering £1000 with interest, so it's best to act as soon as possible.You'll also find yourself fined further in late payment penalties. If you're 30 days past the deadline for paying any outstanding tax, you'll be charged an extra 5% on top of what you owe. If you haven't paid after six months, this increases by another 5%, and again after a year by another 5%. Ouch.

Late filing	Late payment	Penalty
Missed deadline		£100
	30 days late	5% of tax due
3 months		£10 per day for 90 days
6 months		5% of tax due or £300 (whichever is greater)
	6 months	5%
12 months		5% of tax due or £300 (whichever is greater)
	12 months	5%

These penalties will apply whether you file a paper tax return or an online tax return, so it's in your interest to make sure you keep an eye on deadline dates or invest in online services that will do this for you.

How do I avoid missing the Self Assessment deadline in future?

To avoid missing the deadline in future, having a notification or pop-up on standby for when Self Assessment season rolls around – and this is where Ember comes in. We'll automatically send you reminders as the Self Assessment deadline draws near, and for a flat fee our expert accountants can file it directly to HMRC for you.We also recommend keeping on top of your finances throughout the year. With accurate and accessible records on hand, it will take much less time to fill in your forms and give you the time you need to check you're happy with what's in front of you before sending it off. With the Ember app to hand, rest assured that we'll safely store all the information you need for your Self Assessment, giving you one less thing to worry about.

Summary

Missing the Self Assessment deadline isn't ideal, but it's not the end of the world. If you can get organised and submit it within that first month, you won't lose out on too much, and will know what you need to do to prepare your Self Assessment next year.If you need extra help with submitting your Self Assessment forms, we can help. For a simple flat fee, we'll take the stress out of Self Assessment and always make sure you file on time.