HMRC Self Assessment penalty notices delayed

HMRC has decided to delay the sending of Self Assessment penalty notices where the Personal Tax return was submitted after 31st January 2019. This could cause some tax payers to incur increased fines.

Ordinarily, HMRC would send all Self Assessment penalty notices in February, before increased fines take effect. This year however, they have decided to send them in stages through until the end of April. This because sending them all at once would cause ‘an increased demand in our call centres as the UK leaves the EU.’

The potential additional penalties are as follows:

1. File after the 31st January 2019 – £100 fine
2. File three months late – Daily penalty of £10 per day, up to a maximum of £900
3. Pay your tax liability more than 30 days after the due date of 31st January – 5% of tax unpaid

Consequently, a tax payer who doesn’t receive a Self Assessment penalty notice until the end of April could already be incurring daily penalties.

We always recommend filing any return in good time, but some people have a valid reason for late filing. For those to incur additional fines because they haven’t received a reminder for such a long period is unfair.

We know that all of our clients are safe, and aware of the deadlines, because they’ve had regular reminders and prompts throughout the year. Most other regulated firms would do the same. This issue is therefore most likely to affect tax payers without a diligent advisor, or who may not have had to submit a return before.

Anyone who hasn’t yet submitted their tax return for the year ended 5th April 2018 should do so as a matter of urgency. The key date is 30th April 2019, after which daily penalties apply. Similarly, if any tax liability hasn’t yet been paid, this should either be paid straightaway or contact HMRC to ask for a payment arrangement.

If we can help with any aspect of your personal taxes, please get in touch; we’re here to help!