The new penalty regime for late filing and late payment of self assessment income tax begins on Wednesday (6 April). As a result, a tax return filed six months late could attract a penalty of at least £1,300.
The new sanctions are:
- Day one late: an initial penalty of £100, even if there is no tax to pay or all tax owed has been paid.
- Three months late: an automatic daily penalty of £10 a day up to a maximum of £900.
- Six months late: further penalties charged of the greater of 5% of tax due or £300.
- Twelve months late: the penalty will be the greater of 5% of tax due or £300. In serious cases, a higher penalty of up to 100% of the tax due could be charged.
The penalties are on top of the interest HMRC will charge on outstanding amounts, including unpaid penalties, until payment is received.
