In this section: Hold them to account
HMRC penalties and interest
Last updated . Figures refresh every night. How each figure is worked out.
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, HM Revenue and Customs.
Key figures
- 7.75%Late payment interest, a year down on a year earlier: −0.25 pts (−3.1%) vs 29 September 2025
- £3.0bnFines and penalties recognised by HMRC up on a year earlier: +£0.5bn (+20.0%) vs 2024–25
- £1,545mPenalty debt written off or not pursued up on a year earlier: +£220m (+16.6%) vs 2024–25
- 8,128,750Automated penalties issued down on a year earlier: −941,250 (−10.4%) vs 2024–25
- 48,189Automated penalties cancelled on review up on a year earlier: +1,923 (+4.2%) vs 2024–25
Source: HM Revenue and Customs.
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.
How does the new points system work?
Newer penalty regimes
-
VAT returns: late submission points
- From
- 1 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
- From
- 1 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
- From
- 6 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.
How much interest does HMRC charge?
In force since 9 January 2026. Source: HM Revenue and Customs.
In force since 9 January 2026. Source: HM Revenue and Customs.
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%.
The numbers behind this chart
| From | Late payment interest | Repayment interest |
|---|---|---|
2000-02-06Details for 2000-02-06 | 8.5% | 4% |
| ||
2001-05-06Details for 2001-05-06 | 7.5% | 3% |
| ||
2001-11-06Details for 2001-11-06 | 6.5% | 2.25% |
| ||
2003-08-06Details for 2003-08-06 | 5.5% | 1.5% |
| ||
2003-12-06Details for 2003-12-06 | 6.5% | 2.25% |
| ||
2004-09-06Details for 2004-09-06 | 7.5% | 3% |
| ||
2005-09-06Details for 2005-09-06 | 6.5% | 2.25% |
| ||
2006-09-06Details for 2006-09-06 | 7.5% | 3% |
| ||
2007-08-06Details for 2007-08-06 | 8.5% | 4% |
| ||
2008-01-06Details for 2008-01-06 | 7.5% | 3% |
| ||
2008-11-06Details for 2008-11-06 | 6.5% | 2.25% |
| ||
2008-12-06Details for 2008-12-06 | 5.5% | 1.5% |
| ||
2009-01-06Details for 2009-01-06 | 4.5% | 0.75% |
| ||
2009-01-27Details for 2009-01-27 | 3.5% | 0% |
| ||
2009-03-24Details for 2009-03-24 | 2.5% | 0% |
| ||
2009-09-29Details for 2009-09-29 | 3% | 0.5% |
| ||
2016-08-23Details for 2016-08-23 | 2.75% | 0.5% |
| ||
2017-11-21Details for 2017-11-21 | 3% | 0.5% |
| ||
2018-08-21Details for 2018-08-21 | 3.25% | 0.5% |
| ||
2020-03-30Details for 2020-03-30 | 2.75% | 0.5% |
| ||
2020-04-07Details for 2020-04-07 | 2.6% | 0.5% |
| ||
2022-01-07Details for 2022-01-07 | 2.75% | 0.5% |
| ||
2022-02-21Details for 2022-02-21 | 3% | 0.5% |
| ||
2022-04-05Details for 2022-04-05 | 3.25% | 0.5% |
| ||
2022-05-24Details for 2022-05-24 | 3.5% | 0.5% |
| ||
2022-07-05Details for 2022-07-05 | 3.75% | 0.5% |
| ||
2022-08-23Details for 2022-08-23 | 4.25% | 0.75% |
| ||
2022-10-11Details for 2022-10-11 | 4.75% | 1.25% |
| ||
2022-11-22Details for 2022-11-22 | 5.5% | 2% |
| ||
2023-01-06Details for 2023-01-06 | 6% | 2.5% |
| ||
2023-02-21Details for 2023-02-21 | 6.5% | 3% |
| ||
2023-04-13Details for 2023-04-13 | 6.75% | 3.25% |
| ||
2023-05-31Details for 2023-05-31 | 7% | 3.5% |
| ||
2023-07-11Details for 2023-07-11 | 7.5% | 4% |
| ||
2023-08-22Details for 2023-08-22 | 7.75% | 4.25% |
| ||
2024-08-20Details for 2024-08-20 | 7.5% | 4% |
| ||
2024-11-26Details for 2024-11-26 | 7.25% | 3.75% |
| ||
2025-02-25Details for 2025-02-25 | 7% | 3.5% |
| ||
2025-04-06Details for 2025-04-06 | 8.5% | 3.5% |
| ||
2025-05-28Details for 2025-05-28 | 8.25% | 3.25% |
| ||
2025-08-27Details for 2025-08-27 | 8% | 3% |
| ||
2026-01-09Details for 2026-01-09 | 7.75% | 2.75% |
| ||
2026-09-29Details for 2026-09-29 | 7.75% | 2.75% |
| ||
Figure as of 9 January 2026. Source: HM Revenue and Customs.
How much do penalties raise, and how much is written off?
Figures for the 2025–26 financial year. Source: HM Revenue and Customs. Checked by hand 22 September 2026.
Figures for the 2025–26 financial year. Source: HM Revenue and Customs. Checked by hand 22 September 2026.
Figures for the 2025–26 financial year. Source: HM Revenue and Customs. Checked by hand 22 September 2026.
Figures for the 2025–26 financial year. Source: HM Revenue and Customs. Checked by hand 22 September 2026.
| Year | Fines and penalties revenue (HMRC Trust Statement) | Penalty debt written off or not pursued |
|---|---|---|
2023–24Details for 2023–24 | £2.6bn | — |
| ||
2024–25Details for 2024–25 | £2.5bn | £1.3bn |
| ||
2025–26Details for 2025–26 | £3.0bn | £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.
Checked 22 September 2026. Source: HM Revenue and Customs. 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
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. 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; 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: reuse them, including commercially, if you credit Tekstak Ltd and link back to this page.
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Sources for this page
| Source | Publisher | Figures as of | Updated | Licence |
|---|---|---|---|---|
| HMRC annual report and accounts 2025 to 2026 | HM Revenue and Customs | 22 September 2026 | annual | Open Government Licence v3.0 |
| HMRC interest rates for late and early payments | HM Revenue and Customs | 9 January 2026 | quarterly | Open Government Licence v3.0 |
| Economic and fiscal outlook, March 2026: detailed receipts tables | Office for Budget Responsibility | 1 March 2026 | semiannual | Open Government Licence v3.0 |
| legislation.gov.uk and official guidance, provision by provision | legislation.gov.uk | 22 September 2026 | annual | Open Government Licence v3.0 (legislation.gov.uk) |
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.