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Sanctions could exceed £1,300
The new penalty regime for late filing and late payment of self assessment income tax begins on Wednesday (6 April). As a result, a tax return filed six months late could attract a penalty of at least £1,300.
The new sanctions are:
- Day one late: an initial penalty of £100, even if there is no tax to pay or all tax owed has been paid.
- Three months late: an automatic daily penalty of £10 a day up to a maximum of £900.
- Six months late: further penalties charged of the greater of 5% of tax due or £300.
- Twelve months late: the penalty will be the greater of 5% of tax due or £300. In serious cases, a higher penalty of up to 100% of the tax due could be charged.
The penalties are on top of the interest HMRC will charge on outstanding amounts, including unpaid penalties, until payment is received.
As before, fines will be sent automatically to self assessment taxpayers who do not file and pay on time. They will be able to appeal against any penalty on the grounds that they have a reasonable excuse for not complying on time.
