Taxpayers who fail to pay their income tax under self-assessment on time will face higher penalties from April 2025. As announced in the latest Spring Statement, late payment penalties are set to more than double, increasing the financial consequences for delayed tax payments.

Currently, taxpayers who miss their payment deadline face a 2% penalty at 15 days, another 2% at 30 days, and a 4% penalty from day 31 onwards. However, from 1 April 2025, these penalties will rise as follows:

15 days late: Penalty increases from 2% to 3% of unpaid tax

30 days late: Penalty increases from 2% to 3%

31 days or more: Penalty jumps from 4% to 10%

This change means that those who fail to settle their tax liability within a month will now face a substantial 10% penalty on their outstanding balance—more than double the current rate!