What is the penalty for late filing of taxes?

The penalty for late filing of taxes can vary depending on the circumstances. If you fail to file your tax return by the deadline, which is usually 31 January each year, you may initially face a fixed penalty of £100. Additional penalties may be imposed if the return remains outstanding, including daily penalties of £10 per day for up to 90 days. After that period, further penalties may be charged, such as £300 or 5% of the tax due (whichever is higher). If the return is still not filed after six and twelve months, additional penalties will be added. It is important to note that these penalties can quickly accumulate, making it crucial to file your taxes on time.