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30 Mar 2011
PEOPLE WHO file their self assessment returns late will be subject to a £10 daily fine from April 6, HM Revenue & Customs has announced.
HMRC confirmed its tougher penalty regime today, which will result in a £100 automatic fine for people failing to meet the deadline, which will increase by £10 per day up to £900 for the first three months. For those filing more than three months after the deadline, a charge of £300 or 5% of the tax - whichever is greater - will be added to the £900.
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There will also be penalties charged for paying taxes late, which will be a charge of 5% of the tax owed, increasing by 5% every 30 days.
The new penalties will apply to paper returns submitted after the October deadline and the January deadline for online returns.
A spokesman for HMRC said that around 10% - 1 million people - of all self assessment forms are submitted late.
HMRC's acting director of general personal tax, Stephen Banyard, said: "The old £100 penalty was not much of a deterrent and these new penalties, which increase over time, will get people to submit returns as soon as possible. Basically the greater the delay, the greater the penalty."
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Visitor comments Add your comment
Late Filing Penalty
"Basically the greater the delay, the greater the penalty" so what is the penalty for failing to pay refunds due to my clients both personal and corporate? what is the penalty for failing to answer correspondence? what is the penalty for sending out penalty letters for late filing P35s when they were filed on time? what is the penalty for charging premium rates to make a call to talk to HMRC who then cut you off after you have held on for 20+minutes?
Should penalties not "cut both ways"?
These disgraceful charges (lets not even discuss the interest levy) serve only to further reduce the taxpayers regard for HMRC. This latest edict has undoubtedly changed my attitude as an Accountant in practice.
Posted by: Tony Margaritelli, 01 Apr 2011 | 18:10
Penalties !
HMRC are unable to deal with correspondence on time and in our experience have raised several penalties incorrectly. This new system of penalties is a revenue raiser "carry over" from the last governments attack on the private sector. Such penalties should go hand in hand with a fine on the many incompetent HMRC staff that make errors and delay dealing with tax issues expeditiously.
Posted by: j faux, 20 Oct 2011 | 09:09