Penalties for late filing

By Tolley

The following Owner-Managed Businesses guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Penalties for late filing
  • Harmonised regime
  • Corporation tax returns
  • Making Tax Digital: sanctions for late submission and late payment

A single regime which imposes penalties for failure to make or deliver returns or documents on or before the statutory filing date for the particular return in question is being introduced and will eventually apply to all taxes and duties for which HMRC is responsible. The regime has not yet been fully implemented, and this will be staged over the next few years, with the provisions being brought into effect by Treasury order.

Harmonised regime

Broadly, the single regime applies to self assessment tax returns (for individuals, trustees and partnership returns) for 2010/11 returns onwards. It also applies to most other returns with the notable exclusion of corporation tax returns and inheritance tax returns. See Simon’s Taxes A4.503 (subscription sensitive) for full details of the commencement provisions.

The penalty regime imposes the following penalties:

  • fixed penalty of £100 ― automatically issued if return filed late. This applies even if there is no tax to pay, the tax due has been paid on time or the taxpayer is due a refund (FA 2009, Sch 55, para 3)
  • daily penalties of £10 per day ― applied once the return is three months late. HMRC d

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