SELF ASSESSMENT LATE PAYMENT FINES INCREASE

There has been a 14% increase, year on year, of HMRC penalties for late self-assessment tax filing. 2015/16 291,000 taxpayers were penalised for late payments, increasing to 331,000 in the following year.  They have already issued 233,000 fines since the 31^st January 2019 deadline for the self-assessment tax year 2017/18.

“The pool of people at risk of being fined for late payment is now bigger than ever as self-employment continues to grow,” said Tim Woodgates, associate and tax specialist at Moore Stephens. “UK taxpayers are feeling the pinch. As a result, some do not have the money to pay the tax bill on time, even though they want to.”

Late filing penalties can be a mixture of fixed rate and tax geared penalties with interest charged on both unpaid tax and unpaid penalties, if both apply.

Late filing

• Miss filing deadline – £100
• 3 months late – Daily charge of £10 per day up to max £900 + £100 per above
• 6 months late – 5% of tax outstanding at that date or £300, whichever greater + penalties above
• 12 months late – 5% of tax outstanding at that date or £300 if greater, unless the taxpayer is held to be deliberately withholding information that would enable HMRC to assess the tax due

Late Payment

• 30 days late – 5% of tax due
• 6 months late – a further 5% of tax outstanding at that date
• 12 months late – an additional 5% of tax outstanding at that date

HMRC may accept “reasonable excuses” to waive late filing penalties.  “Reasonable excuse” being defines at “normally something unexpected or outside your control that stopped you meeting a tax obligation” such as:

• The recent death of a partner
• An unexpected hospital stay
• Computer failures
• Service issues with the tax authority’s on- line services
• A fire which prevented the completing of a tax return or postal delays

Each case is assessed on an individual basis.

If you need help with your Self Assessment then please call us on 0113 2864486 so we can help.

Source: Accountancy Age & Which