What is a daily penalty for self-assessment?
Answered 17 March 2026
Daily Penalty for Self-Assessment
What the law says
The daily penalty for self-assessment late filing is governed by paragraph 4 of Schedule 55 to the Finance Act 2009. The key features are:
- A person is liable to a daily penalty if they fail to make or deliver a self-assessment return on or before the filing date
- When it triggers: Daily penalties begin to accrue once the return is three months after the filing date (i.e. the "penalty date")
- Rate: £10 for each day the return remains outstanding
- Maximum: The daily penalty is capped at a maximum of 90 days, meaning the maximum daily penalty charge is £900
- The daily rate and the 90-day cap are set out in Schedule 55, Finance Act 2009, and the rates can be ascertained from the Self-Assessment Legal Framework (SALF)
For example, in the case of a 2021/22 return with a filing deadline of 31 January 2023, daily penalties began to accrue from 1 May 2023 (three months after the due date), and a penalty of £880 (88 days × £10) was assessed when the return was filed 177 days late.
HMRC guidance / practice
HMRC's guidance confirms the following:
- Trigger point: "Where the return is not filed three months after the return due date daily penalties will start to accrue."
- Rate and cap: "Daily penalties will be charged at £10 per day up to a maximum of 90 days. If the return is filed during the 90 days the £10 per day daily penalty will be charged up to and including the date the return was filed."
- Although £10 is charged each day, the total of the daily charges make up one penalty
- The final daily penalty charge is for the lesser of: (a) the number of days from when daily penalties first start being charged up to and including the date the return is filed, and (b) 90 days
- Daily penalties are also applicable to partnerships and are chargeable on each partner in the partnership
- HMRC sends daily penalty reminders at 30 days and 60 days into the daily penalty period to notify taxpayers of accruing penalties
- Penalty notices are issued using form SA326D (notice of penalty assessment)
Summary table
| Feature | Detail |
|---|---|
| Legislation | Para 4, Schedule 55, Finance Act 2009 |
| Trigger | 3 months after the filing date |
| Daily rate | £10 per day |
| Maximum period | 90 days |
| Maximum penalty | £900 |
Citation sources
ere the person had a reasonable excuse for the failure but the excuse has ceased, he/she is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased (under para 23(2)). 7. HMRC assert that they issued notices of penalty assessment to the same address as they had on file for the appellant at the relevant time. As regards each penalty (a) HMRC explained that penalty notices are issued directly to the taxpayer and copies of s
ovisions do not apply where the taxpayer establishes a reasonable excuse for the failure to notify their liability under section 7. However, HMRC will always have a period of 4 years in which to make a discovery assessment for a protected assessment. 10. Paragraph 1 Schedule 41 provides that a person who has not been sent a tax return is liable to a penalty if he fails to comply with section 7 TMA. Para 6 Schedule 41 provides that in the case of a “domestic matter” (which this is) where the fail
For occasional returns and returns for periods of 6 months or more, see CH62120, daily penalties of £10 per day can be charged after 3 months from the penalty date. Although £10 is charged each day, the total of the daily charges make up one penalty. The final daily penalties charge is for the lesser of the number of days from when the daily penalties first start being charged up to and including the date on which the return is filed, and 90 days.
Where the return is not filed three months after the return due date daily penalties will start to accrue. Daily penalties will be charged at £10 per day up to a maximum of 90 days. If the return is filed during the 90 days the £10 per day daily penalty will be charged up to and including the date the return was filed. Daily penalties are also applicable to partnerships and chargeable on each partner in the partnership.
The Notice of penalty assessment SA370 and Partnership notice of penalty assessment SA371 are flexible notices that can include more than one penalty, if selected by the system at the same time. The record will show the tax year, the date of the penalty notice, the customer name and address and details of the penalty(s) charged on that date. Information about the different penalty types’ corresponding abbreviations that are shown on the record are shown below, along with some examples. Certain i
a tax return would need to be filed for that tax year because of level of income from property. 10. Since falling within the self-assessment regime, 2019/20 was the only tax year for which Mrs Awan’s income exceeded her personal allowance. 11. For the 2020/21 tax year, Mrs Awan filed a tax return despite her total income falling below the personal allowance and her net income from property falling below £2,500. 12. On 5 October 2021, Mrs Awan signed up to receive paperless contact from HMRC into
Introduction 1. With the consent of the parties, the form of the hearing was V (video) held on Teams. 2. The Appellant did not attend the hearing. Having first confirmed that the Appellant had been sent the notification of the hearing and the joining instructions, the Tribunal considered whether to hold the hearing in his absence. Having regard to the overriding objective, we decided to proceed with the hearing in order to consider the appeal, conscious that there would be an opportunity for eit