What Happens If You Miss a Tax Deadline? And How to Avoid It
Missing a tax deadline can feel daunting, but it doesn’t have to spell disaster. Whether you’re behind on submitting a VAT return, self-assessment, or Corporation Tax, knowing what to expect (and how to get back on track) can help you stay calm, act quickly, and avoid bigger problems.
Let’s look at what actually happens if you miss a deadline and more importantly, how to make sure it doesn’t happen again.
Why This Matters
When deadlines are missed, penalties can pile up quickly. But the bigger issue is the stress, uncertainty, and potential disruption to your business.
By putting the right systems in place – whether that’s automation, reminders, or expert support – you can stop worrying about last-minute scrambles and start focusing on what matters most: running your business with confidence.
What Happens If You Miss a Tax Deadline?
Here’s a practical breakdown of the most common tax deadlines and what happens if you miss them:
1. Self-Assessment Tax Return (31 January)
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Penalty: £100 automatic fine if you’re even one day late.
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After 3 months: Daily penalties (£10 per day, up to £900).
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After 6–12 months: Additional penalties based on the tax owed.
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Interest: Charged on unpaid tax from the due date.
2. Corporation Tax Return (CT600)
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Deadline: 12 months after your year-end, but payment is due 9 months and 1 day after.
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Penalty: £100 late filing penalty, rising the longer it’s overdue.
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Repeat offences: The £100 penalty increases to £500 or more if you’re late multiple times.
3. VAT Returns
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Deadline: One calendar month and 7 days after the end of your VAT period.
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Penalty system: Moved to a new points-based system (as of January 2023).
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Frequent offenders: Risk fines based on return history and outstanding tax.
4. PAYE Payments
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Late payment interest: Applies immediately after the due date.
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Penalties: Start from 1% of the amount due if you’re late more than once in the tax year.
How to Avoid Missing Deadlines
Here’s how you can stay ahead and take the stress out of staying compliant.
1. Use Cloud Accounting Software Like Xero
Set up automated bank feeds and VAT submissions. Xero integrates deadlines into your dashboard, giving you clear visibility and reminders.
2. Book Regular Check-ins With Your Accountant
It’s easy to miss something when you’re busy running your business. A quarterly review with your accountant helps keep everything on track and can flag issues early.
3. Set Digital Reminders (And Delegate!)
Use your calendar or task manager to set reminders a few weeks in advance. Better yet, delegate responsibility to your accountant or bookkeeper.
4. Renew Open Banking Connections
If you use bank feeds, remember they typically expire every 90 days. Renew them in time to avoid missing transactions that could throw off your records.
5. Keep HMRC in the Loop
If you genuinely can’t pay or submit on time, it’s better to contact HMRC early. They may be able to offer a Time to Pay arrangement or reduce penalties if there’s a reasonable excuse.
Expert Tips & Common Pitfalls
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Don’t rely on memory: Even one missed deadline can lead to late filing penalties and interest.
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Check your bank feeds: Broken feeds can cause errors in your VAT or year-end returns – check regularly or provide bank statements to your accountant.
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Avoid last-minute filing: Rushed submissions increase the chance of errors, which could trigger an HMRC enquiry.
Call to Action
Need help keeping on top of your deadlines? At Love Accountancy, we make it effortlessly easy. From automated reminders to full-service filing, we’ll make sure nothing gets missed, so you can focus on growing your business, not chasing paperwork.
Get in touch today and take the stress out of tax season.
About Love Accountancy
At Love Accountancy, we help busy business owners stay compliant and in control – all year round. Whether you’re managing VAT, payroll, or Corporation Tax, we’ll put the systems in place to keep everything running smoothly. As a trusted Exeter accountant with clients across the UK, we make deadlines feel easy, not overwhelming.
Looking for an accountant in Exeter or need help staying on top of tax returns? Let’s make it simple.