A guide, not advice. This explains the general rules for England, Wales & Northern Ireland and can't cover every situation (Scottish bands, partnerships, VAT, capital gains, student loans). Figures are for the 2025/26 tax year, based on published gov.uk rules. Always check gov.uk or a qualified accountant before you file, pay or appeal.

The short answer

If you miss the online filing deadline of 31 January, HMRC charges an automatic £100 fixed penalty — even if you don't owe any tax at all. It gets more expensive the longer you leave it, and paying late is penalised separately from filing late. The single best move is to file as soon as you can, even if you can't pay yet, because that stops the filing penalties growing.

The deadlines

For a quick recap (our registration guide covers who needs to register and the full detail):

What it costs to file late

This is the penalty ladder for a late return (separate from paying late, below). These penalties can stack — the longer the return is outstanding, the more of them apply:

What it costs to pay late

Paying late is penalised separately from filing late — you can owe both at once, or either on its own:

On top of those penalties, HMRC also charges interest on the tax you owe for every day it's outstanding, at its published late-payment rate. We haven't quoted a specific interest rate here because HMRC changes it periodically — see the current rate on gov.uk's HMRC interest rates page.

A worked example

This is a simplified illustration, not a calculation of your own bill. Say Priya owes £600 in tax for 2025/26. She misses 31 January, and by the time she files and pays she's about 4 months late on both:

Your own numbers will be different. Use the side-hustle tax calculator to estimate what you actually owe, then measure how many days late you are against the ladders above.

What to do right now

Sources (checked 6 July 2026)