Revenue reminder on new tax return penalties

HM Revenue and Customs (HMRC) has reminded individuals and businesses about new Self Assessment penalties for late returns and late payments, which come into effect this autumn.

The new penalties for late Self Assessment returns are:

• an initial £100 fixed penalty, which will now apply even if there is no tax to pay, or if the tax due is paid on time;
  
• after 3 months, additional daily penalties of £10 per day, up to a maximum of £900;
  
• after 6 months, a further penalty of five per cent of the tax due or £300, whichever is greater; and
  
• after 12 months, another five per cent or £300 charge, whichever is greater. In serious cases, the penalty after 12 months can be up to 100 per cent of the tax due.

New penalties for paying late are five per cent of the tax unpaid at:

• 30 days;
  
• 6 months; and
  
• 12 months.

Interest will also be charged on top of these penalties.

The tax return deadlines remain unchanged – October 31 for paper and January 31 for online returns. The deadline for paying any tax due also remains the same at January 31.