So you’ve missed the Self Assessment deadline? First of all, don’t panic – you’re not alone, in 2025 it was reported that over 1.1 million people missed the deadline. At EKW Group, we regularly support individuals in this position. We can advise you on what to do straight away to avoid incurring further penalties, as well as how to appeal them if you are eligible.
What Fines Will I Receive?
Initially, you will receive a £100 penalty, as well as interest on any tax owed, straight after the deadline. This £100 penalty applies even if there is no tax to pay, or if you have already paid your tax but filed late. Once you have missed the Self Assessment date, no additional penalties are charged until later, although interest on any unpaid tax will accrue throughout the period after 31 January.
- After 30 days, a penalty of 5% of any unpaid tax owed will be charged to you, however this does not apply if your tax has already been paid.
- After three months, from 1 May, you will begin to receive daily penalties of £10 up to a maximum amount of £900.
- After six months, a further penalty will be imposed, equal to 5% of the tax due or £300, whichever is greater.
- After 12 months, another 5% a further £300 charge will occur, whichever is greater.
What Action Should I Take?
The most important thing to do is to file your returns and pay any tax owed as soon as possible. Acting quickly helps reduce further penalties and interest. Speak to our expert team at EKW Group today for clear, practical support to see how we can help.
What if I Can’t Pay?
If you are unable to pay your tax bill, then speak to HMRC and you may be eligible to arrange a payment plan with them. This is known as a Time to Pay arrangement. You will need to provide them with the specifics of your finances, but as long as you are able to pay the amount owed within 12 months, additional penalties and fees should stop. We can help you prepare for these discussions.
How Do I Appeal?
You can file an appeal through the Gov.UK website, this needs to be done within 30 days, and you need to file your return and pay any tax owed, where possible, prior to submitting the appeal.
There are specific requirements needed for an appeal to go through, examples include: serious illness, hospitalisation, bereavement of a close friend or family member, or unexpected software or computer malfunction. As part of the appeal, you will need to submit evidence of any of these. We can advise whether an appeal is likely to be successful before you apply.
Franchise-specific Advice
As a franchise owner, there are specific areas that will affect you that other business owners won’t have to deal with. This can make Self Assessment more complex. Areas include:
- The initial franchise fee is usually capital, so not fully deductible in year one.
- Ongoing royalties and management fees are usually allowable expenses.
- National advertising fund contributions are normally deductible.
- Shop fit-outs, vehicles, and equipment may qualify for Annual Investment Allowance.
For franchise owners, it can be hard to submit completely accurate returns, particularly in the early stages of trading. Even if you are unsure exactly how much you will need to pay, the best thing to do is to submit an estimate. You will then have 12 months to correct this; just make sure you inform HMRC it is an estimate you are submitting – being open and transparent is key.
