Penalties for late filing

Produced by Tolley
  • (Updated for Budget 2021)
Penalties for late filing

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

  • Penalties for late filing
  • Harmonised regime
  • Coronavirus (COVID-19) ― penalties for late filing of the 2018/19 and 2019/20 self assessment tax returns
  • Penalties involving offshore matters
  • Corporation tax returns
  • When is a return considered to be delivered to HMRC?
  • Inheritance tax returns
  • Future changes ― new late filing penalty regime for income tax and VAT

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). It also applies to most other returns with the notable exclusion of corporation tax returns and inheritance tax returns.

Late filing penalties in relation to corporation tax and inheritance tax returns are discussed separately below.

For full details of the commencement provisions, see Simon’s Taxes A4.503.

The harmonised penalty regime imposes the following penalties:

  1. 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

  2. daily penalties of £10 per day ― applied once the return is three months late. HMRC does not need to go to the Tribunal to levy these penalties and they run either until the return is filed or for a period of 90 days (whichever is the shorter)

  3. tax-geared penalties:

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