HMRC warn of “daily rate ” of penalties for not files assessements

Roger Mills BUSINESS NEWS, NEWS Leave a Comment

Taxpayers that have not yet filed their 2014-15 Self Assessment returns will have been charged an automatic £100 penalty for late submission. The penalty applied from 1 February 2016 even if no tax was due or the tax due was paid on time. ​
However, taxpayers who were meant to file online by 31 January 2016, and have still not filed their 2014-15 return, are reminded that they will face far greater penalties. A daily penalty of £10 per day, up to a maximum of £900 (90 days) would have been charged from 1 May 2016.

There are further penalties that apply if the return is still outstanding for more than 6 months after the 31 January 2016 filing deadline. From 1 August 2016 taxpayers will be charged the greater of £300 or 5% of the tax due. If the return continues to remain outstanding one year after the filing deadline, further penalties will be charged from 1 February 2017.

Whilst HMRC has been taking a more pragmatic approach in respect of taxpayers that file a late return, this only applies to taxpayers that have a reasonable excuse for sending in a late return. It would be hard to find a reasonable excuse almost six months after the deadline for payment.

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