Missed Self Assessment Deadline ?
Our client has been completing self-assessment tax returns for many years, however this year he was unable to provide the information in time to meet the deadline. Due to this, his return will be submitted after the 31st January deadline. This is our answer to his question of where he stands with regard to penalties.
If the return is not filed by the due date a late filing fixed penalty will be automatically imposed. Most late return fixed penalties will be imposed in February.
The penalty charge will be £100 and, in the case of a partnership return, £100 will be charged to each partner. The penalty charge will be a fixed amount and will not be reduced because the tax liability is less than the penalty, or there is no tax liability or refund is due.
If the return is not filed three months after the return due date, daily penalties will start to accrue. Daily penalties will be charged at £10 per day up to a maximum of 90 days.
If the return is filed during the 90 days, the £10 per day daily penalty will be charged up to and including the date the return was filed. Daily penalties are also applicable to partnerships and chargeable on each partner in the partnership.
If the return is still not filed 30 days after daily penalties have started to accrue, then a daily penalty reminder will be issued. This will advise that over £300 daily penalties have already accrued and that the return should be filed as soon as possible.
If the return is still not filed 60 days after daily penalties have started to accrue, a further daily penalty reminder will be issued.
If the return is still not filed 90 days after daily penalties have started to accrue, then a £900 notice of penalty assessment, which includes a payslip, will be issued.
If the return is not filed 6 months after the return due date, a late filing tax geared penalty will be imposed automatically. The penalty will be the greater of £300 or 5% of the amount of tax due from a determination or the amount shown on the return.
Similarly, if the return is not filed 12 months after the return due date, a late filing tax geared penalty will be imposed automatically. The penalty will be the greater of £300 or 5% of the amount of tax due from a determination or the amount shown on the return.
As you can see the penalties can escalate fairly quickly and it is therefore important to deal with this situation as soon as ever possible.
