£900 in daily penalties

August 24, 2012 Categories: Money

If you are among the half a million people who still haven’t sent their 2010/11 tax returns to HM Revenue & Customs (HMRC), you will receive an additional penalty letter from this week. The penalties being issued over the next few weeks are in addition to £100 late-filing penalties for missing the 31 January filing deadline, which were sent out in late February and early March.
New penalties were introduced in April last year. As a result, anyone who ignores their Self-Assessment filing obligations is now liable to higher penalties than in previous years.

The penalties being issued from today will be for a minimum £1,200, comprising:
the maximum £900 in daily penalties for non-filing
a further late-filing penalty of £300 or five per cent of the tax due (whichever is higher)
If you receive a late-filing penalty, you can appeal against it if you think you have a reasonable excuse for not sending their tax return; for example, a family illness or bereavement. Where someone has a reasonable excuse for not sending a return on time, the penalty will be waived.
If you have received a late-filing penalty and have not sent in a return, but think you don’t need to be in Self-Assessment, you can still potentially apply to be taken out of Self-Assessment.
If you need help with this please get in touch with us.