Under the current rules from HMRC, the penalty charge for filling a self-assessment tax return late, after midnight 31st January 2024, is as follows:
· One day late; this is an automatic penalty of £100.00 which applies even if no tax is due or the tax owed have been paid on time.
· If failed to file within Three months; £10.00 per day up to a maximum of £900.00 for the next 90 days.
· Six months late; £300.00 or 5% of the tax due, whichever is the highest.
· Twelve months: £300.00 or 5% of the tax due, whichever is the highest.
Further penalties will be given if information is still not given after more than 12 months.
For late payment of tax, the current penalties are:
· 30 days late of making tax payments: 5% of tax due.
· Over five months after the first penalty; 5% of outstanding tax due at that date.
· Over 11 months after the first penalty; 5% of outstanding tax due at that date.
You can appeal against penalties only if you have a reasonable excuse, this is something that has stopped you meeting the tax obligation.
· Your partner or a close relative has died shortly before the tax return or payment deadline.
· You have a serious or life-threatening illness.
· You had an unexpected stay in hospital that prevented you from dealing with your tax affairs.
· Your computer or software failed just before or while you were preparing your online return.
· Services issues with HMRC online services.
· Fire, flood or theft that prevented you from completing tax return.
· Postal Delays that you could not predicted.
· Delays due to a disability or mental illness you have.
· You relied on someone else to send your return and they did not. (a professional accountant or tax advisor)
You must send your tax return or payment as soon as possible after the reasonable excuse is resolved.
Excuses that do not count as a reasonable excuse:
· Your cheque bounced or payment failed because you did not have enough money.
· You found the HMRC online system too difficult to use.
· You did not get a reminder from HMRC.
· You made a mistake on your tax return.
Contact us if you need a self-assessment submitted.
