Why there is a penalty when you owe nothing
Self Assessment penalties for late filing are not based on your tax. They are charged because HMRC sent you a notice to file a return, and the return arrived late. So even with nothing to pay — or a refund due — a 2025/26 return filed after 31 January 2027 gets the £100 penalty.
Example: filed in March 2027 with £0 to pay
The calculator is set for £0 of tax, with the return filed in March 2027. The result is simply £100: there is no interest and no late payment penalty, because there is nothing to pay. The cost only starts to grow if the return is still not in by May.
| Return filed by the end of | Penalty with £0 to pay |
|---|---|
| February 2027 | £100 |
| March 2027 | £100 |
| April 2027 | £100 |
| May 2027 | £410 |
| June 2027 | £710 |
| July 2027 | £1,000 |
| August 2027 | £1,300 |
| September 2027 | £1,300 |
| October 2027 | £1,300 |
| November 2027 | £1,300 |
| December 2027 | £1,300 |
| January 2028 | £1,300 |
| February 2028 or later | £1,600 |
From May the £10 daily penalties apply, and from August the 6-month penalty uses the £300 minimum, because 5% of £0 is nothing. If the return is more than 12 months late, another £300 is added.
Three ways to get it sorted
- You didn’t need to file at all? For example, you stopped being self-employed, or your only income was taxed through PAYE. Contact HMRC and ask them to withdraw the notice to file. If they agree, the penalties are cancelled. Do this as soon as possible.
- You had a reasonable excuse? Something unexpected and outside your control — a serious illness, a bereavement, a fire, HMRC’s own system failing — can be a reasonable excuse. Appeal online or by post within 30 days of the date on the penalty notice, and file as soon as the problem ended.
- Neither applies? File the return straight away. That stops the penalty from growing past £100 (or stops the daily penalties if you are already in May or later).
Avoiding it next year
If you no longer need to file, tell HMRC before the deadline: for example, let them know you have stopped trading. And if you do still need to file, any day between 6 April and 31 January works — filing early does not mean paying early.
For the 2026/27 tax year, people in Making Tax Digital for Income Tax move to a new points-based system. The traditional penalties shown here still apply to the 2025/26 return due 31 January 2027.
FAQ
Do I get a penalty for a late return if I owe no tax?
Yes. The £100 late filing penalty applies from 1 February 2027 even if you owe nothing or are due a refund.
How much is it if I file 6 months late with no tax to pay?
£1,300: £100, plus £900 of daily penalties, plus the £300 minimum 6-month penalty.
Can HMRC cancel the penalty?
Yes, if you didn’t need to file (ask HMRC to withdraw the notice to file) or if you had a reasonable excuse and appeal within 30 days of the penalty notice.
Sources (checked 5 November 2026): GOV.UK “Self Assessment tax returns: penalties” (gov.uk/self-assessment-tax-returns/penalties); GOV.UK “Penalties for Making Tax Digital for Income Tax” (current penalties apply to the 2025 to 2026 return due 31 January 2027); GOV.UK “HMRC interest rates for late and early payments” (7.75% from 9 January 2026); Finance Act 2009 Schedules 55 and 56; ICAS “Self-assessment penalties: which regime applies for 2025-26 and 2026-27”.