Frequently Asked Questions

The most important thing is to file your return on time even if you can't pay.

Missing the filing deadline adds penalties on top of the tax debt — so filing and paying late is much better than not filing at all.

Once filed, contact HMRC about a Time to Pay arrangement, which lets you spread payments over an agreed period. HMRC is generally willing to set these up for people who engage proactively.

If your situation is complicated or you're worried about dealing with HMRC directly, message us on live chat and we can point you in the right direction.

Yes, in certain circumstances.

HMRC accepts appeals based on a 'reasonable excuse' — things like serious illness, bereavement, or a technical failure on HMRC's own systems. You normally need to appeal within 30 days of receiving the penalty notice.

HMRC doesn't usually accept forgetting about the deadline, finding the form too difficult, or relying on an accountant who didn't file on time as reasonable excuses.

If you think you have valid grounds, you can appeal online through your HMRC account or by writing to HMRC.

Not sure if your situation qualifies? Message us on live chat.

HMRC charges penalties that stack up the longer you leave it:

• Day after the deadline: automatic £100 penalty, regardless of whether you owe any tax
• After 3 months: £10 per day for up to 90 days (up to £900)
• After 6 months: 5% of the tax due or £300, whichever is higher
• After 12 months: a further 5% or £300

Interest is also charged on any unpaid tax.

The key thing: filing as soon as possible stops the daily charges. If you can't pay the bill, file anyway — that limits penalties to the late payment side only. You can then contact HMRC about a Time to Pay arrangement to spread the cost.

We can help you file even if you're already late — just message us on live chat.

A payment on account is an advance payment towards your next year's tax bill.

If your Self Assessment tax bill is over £1,000, HMRC automatically splits your next year's estimated bill into two instalments and asks you to pay them in advance: the first on 31 January (alongside your current year's bill) and the second on 31 July. Each payment is half of your previous year's bill.

This catches a lot of first-year filers by surprise — in January you could end up paying your 2024/25 bill plus the first instalment towards 2025/26 all at once.

If your income is likely to be lower in the current year, you can apply to reduce your payments on account.

If you're unsure how this affects you, message us on live chat.

Capital Gains Tax applies when you sell or dispose of an asset that has increased in value. The main ones are:

• Residential property that isn't your main home (second homes, buy-to-lets, inherited property)
• Shares and investment funds held outside an ISA
• Cryptocurrency
• Business assets including goodwill
• Personal possessions worth more than £6,000, such as jewellery or art

Assets that are exempt include your main home (in most cases), anything held inside a Stocks and Shares ISA, your car, and UK government bonds (gilts).

The gain is calculated as the sale price minus the original purchase price and any allowable costs such as legal fees or improvements.

Usually not, if it was your main home for the entire time you owned it. Private Residence Relief (PRR) exempts the gain from CGT in that case, and you wouldn't normally need to report the sale to HMRC either.

However, CGT can apply — or PRR can be reduced — in these situations:

• You let the property out at any point during your ownership
• You used part of the property solely for business (not just occasional home working)
• The property wasn't your main home for the entire ownership period
• The garden or grounds are very large (over half a hectare)

In these cases, part of the gain may still be exempt, but you'll need to calculate how much.

If you're unsure whether your sale triggers a reporting requirement, message us on live chat.