Please find below the late filing penalties that apply to personal tax returns:
- £100* penalty immediately after the due date for filing (this penalty is applied even if there is no tax to pay, or the tax due has already been paid)
* In the past, the penalty could not exceed the tax due, however this cap has been removed. Therefore, if your return is filed late, the full penalty of £100 will always be due. If filing by ‘paper’ the deadline is 31 October after the end of the fiscal year, and if filing online the deadline is 31 January.
Please find below the additional penalties that can be charged:
- over 3 months late – a £10 daily penalty up to a maximum of £900
- over 6 months late – an additional £300 or 5% of the tax due if higher
- over 12 months late – a further £300 or a further 5% of the tax due if higher. Furthermore, in particularly serious cases, there is a penalty of up to 100% of the tax due.
If you live in Orpington, Bromley, Kent and London and have been charged a penalty we, at Adiva Accountants in Orpington, can help to appeal against the penalty.
The underpayment “coding out”
As a taxpayer, you have the option to ask HMRC to compute your tax liability in advance of the tax being due. In this case the tax return must be completed and filed by 31 October following the end of the tax year. This is also the deadline for making a return where you require HMRC to collect any underpayment of tax through your tax code, also known as ‘coding out’. However, if you file your return online HMRC will extend this deadline to 30 December. Whether you or HMRC calculate the tax liability, there will be only one assessment which covers all your tax liabilities for the tax year.
Amendments and corrections
HMRC has nine months from the return being filed to correct a self assessment, in order to correct any obvious errors or mistakes in the return.
An individual has 12 months from the return being filed to amend their self assessment by notifying HMRC of the changes made.
