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.

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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.

If your self assessment return is late by:

  • 1 day - you will pay a £100 late filing penalty
  • 3 months - you may have to pay a penalty of £10 a day, for a maximum of 90 days (£900)
  • 6 months - you’ll have to pay a further penalty of 5% of the tax you owe or £300, whichever is greater
  • 12 months - you’ll have to pay a further penalty of 5% of the tax you owe or £300, whichever is greater. In some cases, you may have to pay a penalty of up to 100% of the tax you owe.

How much is a late payment penalty for self assessment tax?

As well as penalties for late filing, there are penalties for late payment of self assessment tax. You need to pay any tax you owe by 31 January following the end of the tax year.

If you are late paying your tax by:

  • 30 days – you’ll have to pay 5% of the tax you owe at that date
  • 6 months – you’ll have to pay a further penalty of 5% of the tax you owe at that date
  • 12 months – you’ll have to pay a further penalty of 5% of the tax you owe at that date

Self assessment late payment penalties are in addition to any late filing penalty. Find out more about self assessment penalties here.

When MTD for ITSA comes into place, self-employed people will be subject to the new points-based penalty system 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.

  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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