Year-End Tax Guide 2023/24: Penalties

Have you made these key considerations? Prevent penalties and learn about the cost of non-compliance.

January 30, 2024
Year-End Tax Guide 2023/24: Penalties

The Cost of Non-Compliance  

HMRC issues fines for non-compliance with income tax, corporation tax, VAT and inheritance tax.    

The self-assessment deadline for income tax is midnight on 31 January 2024, and you will receive penalties if yours is late.  

You will also be charged interest on late payments at 7.75% from 22 August 2023.  


Late payment interest is set at the Bank of England’s base rate plus 2.5%, so it is subject to change before the end of the tax year.    

If you send a late self-assessment income tax return, you will have to pay:  

  • £100 for being a day late  
  • £10 a day for a maximum of 90 days for being three months late  
  • 5% of the tax you owe or £300, whichever is greater, if six months late  
  • a further 5% of the tax you owe or £300, whichever is greaterv, if 12 months late – in some cases, you may have to pay up to 100% of the tax you owe.  


If you delay paying your self-assessment income 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.  


New businesses also face being fined for not notifying HMRC that they have commenced trading.  

If the business is a company then it will also need to ensure it submits its annual accounts ahead of its deadline to avoid incurring a penalty.    

Penalties vary from £150 for a private company filing its annual accounts one month late to £7,500 for a public company that files its accounts more than six months late.

Year-End Tax Guide 2023/24  

If you would like to access our full year-end tax guide, simply click here to view the PDF.    

Alternatively, you can view an area specific mini blog from the list below:    

1. Personal Allowances and Reliefs    

2. ISAs  

3. Pension Contributions  

4. Inheritance Tax

5. Property Tax

6. Capital Gains Tax  

7. Business Asset Disposal Relief

8. Non-Domiciled Tax

9. Tax-Efficient Staff Benefits

10. Corporation Tax

11. VAT




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