Yes. But only if one thing is understood from start:

Your actions matter more than your intentions.

HMRC doesn’t care if you didn’t intend to file late.

Or if you didn’t know the tax amount owed.

Or if your laptop broke.

Or if your dog ate the receipt etc.  

You get the idea.

They will still issue tax penalties, and often when they do come, they don’t come quietly.

We know that for small business owners, tax can often feel like a minefield, with unexpected explosions waiting underfoot!

However, it doesn’t have to be like this, if you know the best route to take before you set out on the journey.

A good accountant can help you with this, so no one has to pick up the pieces if it all goes wrong.

We can help you avoid tax penalties ahead of time, making sure everyone is happy.

So how, why, and what does this look like in practice?

The Real Cost of Tax Penalties

Before we talk about avoiding penalties, let’s get clear on what they are and why they’re worth dodging in the first place.

HMRC penalties aren’t just a slap on the wrist. They can range from annoying to threatening the life of your business:

• Late filing (e.g. tax return, accounts, VAT): Starts at £100 and escalates quickly
• Late payment: Daily interest for each day overdue + escalating penalties for longer durations
• Inaccurate returns: Up to 100% of the tax owed, depending on the severity of the mistake or error
• Failure to notify (e.g. new income streams): Further penalties, depending on timing

If you run a limited company, this can apply to:

• Corporation tax (CT600)
• Annual accounts (Companies House)
• VAT returns (if VAT registered)
• Payroll (PAYE & RTI submissions)
• P11Ds or PSAs
• Director self-assessments (SA100s)

Each one can be a ticking time bomb if they’re missed.

The worst part is that many business owners don’t even know they’ve triggered a penalty until it’s too late.

Why Penalties Happen (Even to Good People)

Most businesses don’t set out to be late on their taxes. Their intentions are usually pure.

However most of the time penalties happen because:

• Deadlines were missed or forgotten
• Something changed in the business (new income, employees, VAT threshold exceeded etc.)
• The wrong form was submitted, or the right one was submitted late or incorrectly
• HMRC didn’t receive what they needed (or they say they didn’t)
• You assumed someone else was handling it

And that’s the key point: assumptions and incompetence cause fines.

We’ve seen good, ethical, diligent, hard-working people get hit with penalties because they didn’t even know existed.

Not because they were careless, but because they were busy. Or confused. Or tired of trying to keep up with everything. There are a lot of forms, filings, and acronyms.

The tax system isn’t designed to be friendly. It’s designed to work and be effective. And if you fall outside of how it works, unfortunately you have to pay.

So, Can an Accountant Actually Stop This?

Yes, usually. Not all accountants, and not all clients, but the right accountant, working in the right way, can usually help most clients to drastically reduce their risk of penalties and in many cases, eliminate them altogether.

Here’s how we do it at RedBrick:

1. We build a calendar around your business

You don’t need to memorise when your VAT quarter ends or when your P11D is due. We do that for you. We create a compliance calendar, tailored to your business, and we run your filings like clockwork. Accurate. Consistent. Reliable. Three of our core principles.

2. We keep your books clean and up-to-date

Penalties often come from incorrect or missing information. If your bookkeeping is delayed, so is everything else. We use smart cloud tech like HubDoc and Xero to keep everything current and flag issues long before HMRC does.

3. We stay ahead of changes

Tax law shifts. Thresholds move. New obligations crop up. We keep track of what’s changing and how it affects you. So you don’t accidentally miss something because the goalposts moved overnight, without your knowledge.

4. We communicate clearly and often

A lot of tax trouble starts with poor communication. “I thought you were doing that.” “No, I thought you were.” We don’t leave space for those gaps. We’re proactive, contracted, responsive, and human about it. You’ll never feel silly asking a question. All dialogue is welcome and valid. Because ultimately we help business owners “Feel At Home” with their finances.

5. We deal with HMRC for you

Ever tried to get through to HMRC on the phone? Was it a joyful and productive experience? – We can handle much of the correspondence, appeals, disputes, and payment plans, so you don’t need to waste time or emotional energy trying to speak to them, or translate what they tell you.

But Isn’t It Just Cheaper to Handle It Yourself?

On paper, sometimes. But let’s look at the real-world costs:

DIY Tax	Cost
Time spent Googling and ChatGPT’ing forms and deadlines	Hours per month
Missed filings due to confusion	£100+ per return
Wrong submissions	Up to 100% of the tax owed
Stress, worry, distraction	Priceless

The irony? Many people who try to save money by doing it all themselves end up spending more in penalties, their time, and lost productivity than they would have with professional help to begin with.

Hiring a decent accountant isn’t just about convenience. It’s also risk management and mitigation. Peace of mind.

It’s a bit like home insurance. You don’t buy it because you expect a fire, you buy it because it reduces the risk and potential future impact, if a fire occurs. It also becomes cheaper the more proactive measures you put in place, and the same is true for your business.

What Kind of Business Is Most At Risk?

Penalties can be particularly hard in:

• Fast-growing service businesses (new hires, new income streams)
• VAT-registered businesses with inconsistent bookkeeping
• Directors with multiple income sources (property, dividends, investments)
• Agencies and consultancies using multiple platforms and payment systems
• Businesses who’ve recently switched accountants (and things got lost in the handover, or were never good to begin with!)

If any of these sound like you, you may be exposed, whether you realise it or not, so it’s worth getting a Chartered Accountant to check.

For Example:

Say you run a creative agency and are doing your monthly books yourself.

You thought your accountant was handling your P11Ds. They weren’t. You miss the deadline.

HMRC fines you £300 for late filing. Then another £100 for each additional month. Then they re-assess the benefit and add interest. All for a company car you’ve put through the business and rarely used.

You then switch to RedBrick. We backdate your filings, appeal the fines (partially successful), and now handle your monthly compliance end-to-end, so you don’t miss any more deadlines.

Tax Planning vs Penalty Avoidance

Here’s an important distinction:

• Tax planning is about paying the right amount of tax and not a penny more
• Penalty avoidance is about not paying tax twice because of fines and interest

We do both.

But this article is about the second one. Because penalties are avoidable. And because every pound you pay in fines is a pound you weren’t able to invest in your team, your growth, or your own pocket.

Signs You Might Need Help

If you’re asking yourself:

• “When is my next VAT return due again?”
• “Have I submitted everything Companies House needs?”
• “What’s a P11D and do I need one?”
• “Did I pay that HMRC letter or just read it and forget about it?”

An accountant could probably help you avoid penalties.

Similarly, do you find yourself completing every return last minute?

Filing just in time?

That could be another sign an accountant could help.

And if that accountant is us, we’ll help you do it in a way that feels calm, clear, and manageable.

At RedBrick, it’s not just about filing your forms. It’s about helping you feel at home with your business finances. Safe. Seen. Looked After. Heard.

What You Can Do Today

Here’s a quick checklist:

• Check when your next tax filings are due
• Make sure you know who’s responsible for each one
• Look through your recent HMRC letters and make sure they have all been actioned
• Ask yourself: am I 100% confident I’m on top of everything?

If there’s even a hint of doubt, that’s your sign.

We’d love to help.

No Shame, Just Solutions

Honestly, we’ve seen it all. From forgotten PAYE schemes to VAT fines that could’ve been avoided with one email.

There’s no judgement here. We’ll just clean it up and help you move forward. Calm and collected.

Because you didn’t start your business to deal with HMRC. You started it to do great work and provide value to your customers. To build something you’re proud of. To take care of people: maybe your team, maybe your family, or maybe just yourself.

Our job is to help you do that with fewer surprises, fewer penalties, and fewer late nights preparing spreadsheets or worrying about filings.

For a better home for your business finances, email: hello@redbrickaccounting.com