HMRC Penalty Calculator

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HMRC interest rate: 8.75%BoE base: 4.75%Verified 6 May 2025

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Common questions

How much is the HMRC penalty for a late tax return?

The Self Assessment late filing penalty starts at £100 on day 1, even if no tax is owed. After 3 months, £10 daily penalties apply (up to £900). A further 5% of tax owed or £300 is added at 6 months, and again at 12 months. Use our Self Assessment penalty calculator for an exact figure.

What is the HMRC late payment interest rate?

HMRC charges interest at 8.75% per annum (Bank of England base rate + 4%) on unpaid tax as of 6 May 2025. Interest runs from the day after the payment deadline until the balance is cleared. Our late payment interest calculator shows the daily accrual.

What are MTD ITSA penalty points?

Making Tax Digital (MTD) for Income Tax uses a points-based system. You receive 1 point for each missed quarterly update or final declaration. Reaching 4 points triggers a £200 financial penalty for every further miss. Points below the threshold expire automatically after 24 months.

Can I appeal an HMRC penalty?

Yes — if you have a genuine reasonable excuse (serious illness, bereavement, or an HMRC system failure) you can appeal within 30 days of the penalty notice. A tax specialist can assess your grounds and manage the appeal on your behalf.

TaxPenalty.co.uk is a free guidance tool based on HMRC’s published penalty rules as of 6 May 2025. It does not constitute professional tax advice. Penalty rates and interest rates change, so always verify your position at gov.uk or with a qualified accountant. No cookies, no tracking, no data stored.