# HMRC penalties and interest url: https://whereyourmoneygoes.co.uk/hmrc-penalties-and-interest/ updated: 29 September 2026 licence: Our words, analysis, charts and derived calculations: CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/), credit [Tekstak Ltd](https://tek-stak.co.uk). Figures: each source's own licence, listed under Sources. publisher: [Tekstak Ltd](https://tek-stak.co.uk) # HMRC penalties and interest Last updated 29 September 2026. Figures refresh every night. [How each figure is worked out](/methodology/). Filing a Self Assessment return late costs **£100** straight away, then £10 a day after three months, rising to 5% of the tax or £300 at six and twelve months. Tax paid late costs **7.75% a year in interest** (Bank Rate plus 4 points, since April 2025) plus late payment penalties. HMRC recognised **£3.0bn** of fines and penalties in 2025–26. The money goes to the Consolidated Fund. Figure as of 22 September 2026. Source: [HM Revenue and Customs](https://assets.publishing.service.gov.uk/media/6a4f66c406e7256c331df8a2/HMRC_annual_report_and_accounts_2025_to_2026.pdf), [HM Revenue and Customs](https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates). ## Key figures - 7.75%Late payment interest, a year ▼ As of 9 January 2026 - £3.0bnFines and penalties recognised by HMRC ▲ 2025–26 - £1,545mPenalty debt written off or not pursued ▲ 2025–26 - 8,128,750Automated penalties issued ▼ 2025–26 - 48,189Automated penalties cancelled on review ▲ 2025–26 Source: [HM Revenue and Customs](https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates). ## What are the Self Assessment penalties? | When | Penalty | | --- | --- | | Return up to 3 months late | £100, even if there is no tax to pay or it is paid on time | | More than 3 months late | £10 a day, up to 90 days (£900) | | 6 months late | A further 5% of the tax due or £300, whichever is greater | | 12 months late | Another 5% or £300, whichever is greater, and more if the delay was deliberate | | Tax paid late | 5% of the unpaid tax at 30 days, 6 months and 12 months, plus interest | An estimated 1.1 million people missed the January 2025 deadline. An estimated 1.0 million people missed the January 2026 deadline. Penalties can be appealed if there was a reasonable excuse. [Count the days to a filing or payment deadline](https://howlongisit.co.uk/days-until) ## How does the new points system work? Newer penalty regimes - [VAT returns: late submission points](https://www.gov.uk/guidance/penalty-points-and-penalties-if-you-submit-your-vat-return-late) From1 January 2023 A point for each late return. At 2 points (annual), 4 (quarterly) or 5 (monthly) a £200 penalty, then £200 for each further late return. - [VAT and Making Tax Digital: late payment](https://www.gov.uk/guidance/how-late-payment-penalties-work-if-you-pay-vat-late) From1 April 2025 3% of tax unpaid at day 15, a further 3% at day 30, then 10% a year from day 31. - [Making Tax Digital for Income Tax](https://www.gov.uk/guidance/penalties-for-making-tax-digital-for-income-tax) From6 April 2026 Late submission points with a 4-point threshold and £200 penalties. Late payment 3% + 3% + 10% a year in 2026-27, rising to 4% + 4% + 10% a year from 2027-28. [Work out a self-employed tax bill and payments on account](https://howlongisit.co.uk/self-employed-tax-calculator) ## How much interest does HMRC charge? 7.75% Late payment interest ▼ In force since 9 January 2026. Source: [HM Revenue and Customs](https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates). 2.75% Repayment interest (HMRC owes you) ▼ In force since 9 January 2026. Source: [HM Revenue and Customs](https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates). Interest is not a penalty: it charges for the use of money, so it follows Bank Rate. Late payment interest is Bank Rate plus 4 percentage points (it was Bank Rate plus 2.5 points until 6 April 2025); repayment interest is Bank Rate minus 1 point, with a floor of 0.5%. ### What does this mean for you? How much tax is paid late? This is the interest for a full year at the current rates. Tax paid a year late £ £2,000 paid a year late costs **£155.00** in interest at 7.75%. If HMRC owed you the same amount for a year, it would pay you £55.00 at 2.75%. Simple interest at today’s rates for a whole year; the rate moves with Bank Rate. Late payment penalties of 5% at 30 days, 6 months and 12 months are on top. Figure as of 9 January 2026. Source: [HM Revenue and Customs](https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates). **HMRC late payment and repayment interest rates** **The numbers behind this chart** Search | From | Late payment interest | Repayment interest | | --- | --- | --- | | 2000-02-06Details | 8.5% | 4% | | Repayment interest4% | | | | 2001-05-06Details | 7.5% | 3% | | Repayment interest3% | | | | 2001-11-06Details | 6.5% | 2.25% | | Repayment interest2.25% | | | | 2003-08-06Details | 5.5% | 1.5% | | Repayment interest1.5% | | | | 2003-12-06Details | 6.5% | 2.25% | | Repayment interest2.25% | | | | 2004-09-06Details | 7.5% | 3% | | Repayment interest3% | | | | 2005-09-06Details | 6.5% | 2.25% | | Repayment interest2.25% | | | | 2006-09-06Details | 7.5% | 3% | | Repayment interest3% | | | | 2007-08-06Details | 8.5% | 4% | | Repayment interest4% | | | | 2008-01-06Details | 7.5% | 3% | | Repayment interest3% | | | | 2008-11-06Details | 6.5% | 2.25% | | Repayment interest2.25% | | | | 2008-12-06Details | 5.5% | 1.5% | | Repayment interest1.5% | | | | 2009-01-06Details | 4.5% | 0.75% | | Repayment interest0.75% | | | | 2009-01-27Details | 3.5% | 0% | | Repayment interest0% | | | | 2009-03-24Details | 2.5% | 0% | | Repayment interest0% | | | | 2009-09-29Details | 3% | 0.5% | | Repayment interest0.5% | | | | 2016-08-23Details | 2.75% | 0.5% | | Repayment interest0.5% | | | | 2017-11-21Details | 3% | 0.5% | | Repayment interest0.5% | | | | 2018-08-21Details | 3.25% | 0.5% | | Repayment interest0.5% | | | | 2020-03-30Details | 2.75% | 0.5% | | Repayment interest0.5% | | | | 2020-04-07Details | 2.6% | 0.5% | | Repayment interest0.5% | | | | 2022-01-07Details | 2.75% | 0.5% | | Repayment interest0.5% | | | | 2022-02-21Details | 3% | 0.5% | | Repayment interest0.5% | | | | 2022-04-05Details | 3.25% | 0.5% | | Repayment interest0.5% | | | | 2022-05-24Details | 3.5% | 0.5% | | Repayment interest0.5% | | | | 2022-07-05Details | 3.75% | 0.5% | | Repayment interest0.5% | | | | 2022-08-23Details | 4.25% | 0.75% | | Repayment interest0.75% | | | | 2022-10-11Details | 4.75% | 1.25% | | Repayment interest1.25% | | | | 2022-11-22Details | 5.5% | 2% | | Repayment interest2% | | | | 2023-01-06Details | 6% | 2.5% | | Repayment interest2.5% | | | | 2023-02-21Details | 6.5% | 3% | | Repayment interest3% | | | | 2023-04-13Details | 6.75% | 3.25% | | Repayment interest3.25% | | | | 2023-05-31Details | 7% | 3.5% | | Repayment interest3.5% | | | | 2023-07-11Details | 7.5% | 4% | | Repayment interest4% | | | | 2023-08-22Details | 7.75% | 4.25% | | Repayment interest4.25% | | | | 2024-08-20Details | 7.5% | 4% | | Repayment interest4% | | | | 2024-11-26Details | 7.25% | 3.75% | | Repayment interest3.75% | | | | 2025-02-25Details | 7% | 3.5% | | Repayment interest3.5% | | | | 2025-04-06Details | 8.5% | 3.5% | | Repayment interest3.5% | | | | 2025-05-28Details | 8.25% | 3.25% | | Repayment interest3.25% | | | | 2025-08-27Details | 8% | 3% | | Repayment interest3% | | | | 2026-01-09Details | 7.75% | 2.75% | | Repayment interest2.75% | | | | 2026-09-29Details | 7.75% | 2.75% | | Repayment interest2.75% | | | Figure as of 9 January 2026. Source: [HM Revenue and Customs](https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates). ## How much do penalties raise, and how much is written off? £3.0bn Fines and penalties revenue, HMRC Trust Statement ▲ Figures for the 2025–26 financial year. Source: [HM Revenue and Customs](https://assets.publishing.service.gov.uk/media/6a4f66c406e7256c331df8a2/HMRC_annual_report_and_accounts_2025_to_2026.pdf). Checked by hand 22 September 2026. £1,545m Penalty debt written off or not pursued ▲ Figures for the 2025–26 financial year. Source: [HM Revenue and Customs](https://assets.publishing.service.gov.uk/media/6a4f66c406e7256c331df8a2/HMRC_annual_report_and_accounts_2025_to_2026.pdf). Checked by hand 22 September 2026. 8,128,750 Automated penalties issued ▼ Figures for the 2025–26 financial year. Source: [HM Revenue and Customs](https://assets.publishing.service.gov.uk/media/6a4f66c406e7256c331df8a2/HMRC_annual_report_and_accounts_2025_to_2026.pdf). Checked by hand 22 September 2026. 48,189 Automated penalties cancelled on review ▲ Figures for the 2025–26 financial year. Source: [HM Revenue and Customs](https://assets.publishing.service.gov.uk/media/6a4f66c406e7256c331df8a2/HMRC_annual_report_and_accounts_2025_to_2026.pdf). Checked by hand 22 September 2026. | Year | Fines and penalties revenue (HMRC Trust Statement) | Penalty debt written off or not pursued | | --- | --- | --- | | 2023–24Details | £2.6bn | — | | Penalty debt written off or not pursued— | | | | 2024–25Details | £2.5bn | £1.3bn | | Penalty debt written off or not pursued£1.3bn | | | | 2025–26Details | £3.0bn | £1.5bn | | Penalty debt written off or not pursued£1.5bn | | | Includes bulk remissions of Self Assessment penalties: £284m in 2025-26 and £231m the year before. Revenue is what HMRC recognises as due, not cash received, which is why a large share is later written off. The OBR, which records penalties on a cash basis, puts HMRC penalty receipts at **£0.78bn** in 2024–25, and forecasts £1.4bn by 2030–31. Figure as of 1 March 2026. Source: [Office for Budget Responsibility](https://obr.uk/efo/). Checked 22 September 2026. Source: [HM Revenue and Customs](https://assets.publishing.service.gov.uk/media/6a4f66c406e7256c331df8a2/HMRC_annual_report_and_accounts_2025_to_2026.pdf). Checked by hand 22 September 2026. - Not published: HMRC does not publish its interest receipts separately. - Not published: The number of £100 Self Assessment late-filing penalties issued each year is not published as a standalone figure. - Not published: Outcomes of penalty appeals at tribunal are not published in a comparable series. - Not published: The law behind the 4% late payment rate from 2027-28, and whether VAT moves to 4% too. ## Where does the money go? **HMRC penalties and late payment interest** Consolidated Fund (general Treasury funds) the Consolidated Fund, through the HMRC Trust Statement. Penalties relating to National Insurance go to the National Insurance Fund. [Exchequer and Audit Departments Act 1921, s2](https://www.legislation.gov.uk/ukpga/Geo5/11-12/52/section/2) HMRC accounts for taxes, fines and penalties in its Trust Statement, prepared under section 2 of the Exchequer and Audit Departments Act 1921, and pays net receipts into the Consolidated Fund. Penalties relating to National Insurance go to the National Insurance Fund. Legal position as of 22 September 2026. Source: [legislation.gov.uk](https://www.legislation.gov.uk/). Checked by hand 22 September 2026. ## Are HMRC penalties fair? ### The case for - A fixed, automatic penalty is cheap to run and treats everyone the same. - Without penalties, paying late would be a free loan from other taxpayers. - Points systems now warn before charging, for VAT and Making Tax Digital. ### The case against - The £100 applies even when no tax is owed. - Interest at Bank Rate plus 4 is well above what HMRC pays when it owes you. - Tens of thousands of automatic penalties are cancelled on review each year, and hundreds of millions written off. ## Common questions What is the penalty for a late tax return? £100 immediately, then £10 a day after three months up to £900, then 5% of the tax due or £300 at six months and again at twelve.What interest does HMRC charge on late tax? 7.75% a year: Bank Rate plus 4 percentage points, since 6 April 2025. ## Use this data The figures belong to the bodies that published them and are used under their terms, listed in [Sources for this page](#sources); most are Crown copyright under the Open Government Licence. Only our own words, analysis, charts and derived calculations are ours, published under [CC BY 4.0](https://creativecommons.org/licenses/by/4.0/): reuse them, including commercially, if you credit [Tekstak Ltd](https://tek-stak.co.uk) and link back to this page. ### Download - [HMRC late payment interest rate, every change (CSV)](/data/hmrc-late-payment-interest.csv) [JSON](/data/hmrc-late-payment-interest.json) HM Revenue and Customs: [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) - [All data, field definitions and licences](/data/) ## Sources for this page | Source | Publisher | Figures as of | Updated | Licence | | --- | --- | --- | --- | --- | | [HMRC annual report and accounts 2025 to 2026](https://assets.publishing.service.gov.uk/media/6a4f66c406e7256c331df8a2/HMRC_annual_report_and_accounts_2025_to_2026.pdf) | HM Revenue and Customs | 22 September 2026 | annual | [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) | | [HMRC interest rates for late and early payments](https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates) | HM Revenue and Customs | 9 January 2026 | quarterly | [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) | | [Economic and fiscal outlook, March 2026: detailed receipts tables](https://obr.uk/efo/) | Office for Budget Responsibility | 1 March 2026 | semiannual | [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) | | [legislation.gov.uk and official guidance, provision by provision](https://www.legislation.gov.uk/) | legislation.gov.uk | 22 September 2026 | annual | [Open Government Licence v3.0 (legislation.gov.uk)](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) | Each source's figures are used under the licence shown. Our own words, analysis, charts and derived calculations are ours, under [CC BY 4.0](https://creativecommons.org/licenses/by/4.0/). ## Related pages - [How much income tax do I pay?](https://whereyourmoneygoes.co.uk/income-tax/) - [How much VAT do I pay, and on what?](https://whereyourmoneygoes.co.uk/vat/) - [How much tax goes uncollected in the UK, and why?](https://whereyourmoneygoes.co.uk/tax-gap/) ## More from this publisher - [UK tax calculators](https://howlongisit.co.uk) Published by [Tekstak Ltd](https://tek-stak.co.uk). Our words, analysis, charts and derived calculations: CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/), credit [Tekstak Ltd](https://tek-stak.co.uk). The figures belong to the publishers listed under Sources and are used under their licences. Figures last updated 29 September 2026.