Self assessment late filing penalties

Produced by Tolley
Self assessment late filing penalties

The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Self assessment late filing penalties
  • Penalties for late filing
  • Coronavirus (COVID-19) ― penalties for late filing of the 2018/19 tax return
  • Penalties involving offshore matters and offshore transfers
  • Offshore transfers ― 6 April 2016 onwards
  • Interaction with requirement to correct
  • Future changes to penalties for offshore matters and offshore transfers
  • Offshore matters and offshore transfers ― additional penalties on top of tax-geared penalties
  • Offshore asset moves ― 27 March 2015 onwards
  • Asset-based penalties ― 6 April 2016 onwards
  • More...

If the self assessment tax return is not filed by the due date and the taxpayer does not have a reasonable excuse for late filing, penalties will be charged. The amount of the penalty depends on:

  1. the tax year in question

  2. the length of time the return is outstanding, and

  3. the behaviour of the taxpayer (higher penalties are charged if the failure to file is deliberate)

For details of the due date for filing the return, see the Self assessment filing deadline guidance note.

For details of reasonable excuse in relation to late filing, see the Self assessment ― reasonable excuse for late filing guidance note.

This guidance note discusses the penalty regime which has applied since 2010/11 and the higher penalties due where offshore matters, offshore asset moves or offshore transfers are involved. It also covers when a penalty notice might be cancelled and how to appeal a penalty notice.

Penalties for late filing

For 2010/11 tax returns onwards, the harmonised late filing penalty rules in FA 2009, Sch 55 apply.

These rules increase the pressure on agents in the run up to the filing deadlines as this penalty regime is harsher for the taxpayer than the old rules. Under FA 2009, Sch 55, the penalties are not capped to the tax liability or reduced by paying the tax liability and the tax-geared penalties kick in earlier.

The penalties for late filing are:

  1. fixed penalty £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 £10 per day ― can apply once the return is three months late. The daily penalties run from the date specified in the HMRC notice until either the return is filed or for a period of 90 days (whichever is the shorter). The HMRC Officer no longer needs to go to the Tribunal to levy daily penalties

  3. tax-geared penalties:

    1. six months late ― penalty of 5%

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