Record penalties imposed as taxpayers file and pay late

HMRC imposed a record £860m in penalties on individual taxpayers in the year to 31 May 2019 up 24% from £694m in the previous year.

UHY Hacker Young says that an increasing number of people are struggling to make tax payments on time leading to a steep increase in the value of penalties imposed by HMRC for late tax payments. Some individuals missing tax payment and filing deadlines by 12 months are subject to further penalties of up to 100% of the tax due if HMRC rules that their late payment or filing is deliberate. The use of these much higher penalties may have been a key factor behind this year’s total.

Clive Gawthorpe partner at the firm said: ‘Penalties for late tax payments can be extremely punitive and people need to avoid them at all costs. For the most severe penalties individuals may find that the...