Tax return filing penalties

HM Revenue & Customs recently issued the following as a reminder of the late filing penalties for Self-Assessment Tax Returns for the 2010/11 years and onwards. Accountants and Tax Advisors should take note of the initial £100 penalty applying regardless of whether the taxpayer has paid their tax on time or not!

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

The changes will affect Self Assessment returns for 2010-2011 and all future financial years.
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 5% of the tax due or £300, whichever is greater; and
- after 12 months, another 5% or £300 charge, whichever is greater. In serious cases, the penalty after 12 months can be up to 100% of the tax due.

New penalties for paying late are 5% of the tax unpaid at:
- 30 days,
- 6 months, and
- 12 months.

Interest will also be charged on top of these penalties. Further information on the new penalties is available from the HMRC website at