Chapter 6

What happens if you don't pay self-employment tax?

We explore what to do if you miss your self-employment tax deadline and the late penalty charges that will apply.

Illustrated person scratching head with question marks and chat boxes surrounding their head.

Missing your self-employment tax deadline

If you miss the deadline for submitting and paying your self assessment, you may have to pay a penalty.

The penalty is £100 if your self assessment return is up to three months late. You’ll also pay interest on late payments. Use HMRC’s penalty calculator to estimate how much a late payment will cost you.

When Making Tax Digital for Income Tax (MTD for IT) comes into place from 2026, the new points-based penalty system will apply instead.

Disclaimer

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

Next: Chapter 7
Previous: Chapter 5

The ultimate guide to self-employed tax

Our expert guide tells you everything you need to know about paying tax to HMRC when you’re self-employed, including tackling MTD for IT

  1. Understanding tax obligations for the self employed
  2. Self-employment tax thresholds
  3. Tax returns & calculating your self-employment tax
  4. National Insurance for the self-employed
  5. Paying tax to HMRC as a self-employed person
  6. What happens if you don't pay self-employment tax?
  7. Self-employed tax and Making Tax Digital

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