HMRC has rolled out a £10 daily late filing penalty for those who still haven’t submitted their Self Assessment tax return, which was originally due on January 31. Experts warn this additional fee will apply to hundreds of thousands of individuals.
Alastair Douglas, CEO at TotallyMoney, stated: “While the initial £100 fine might not have been enough to encourage some to get going, from today, HMRC will start charging late filers an extra £10 per day.
“This is on top of the eyewatering 8.5 per cent late payment interest rate on outstanding balances. If in three months’ time you still haven’t filed your return, the taxman will hit you with a penalty of 5 per cent of the tax due or £300, whichever is greater. Any penalties need to be paid within 30 days, and can be done in several ways, including Direct Debit, bank transfer, or by cheque.”
He added: “If you have a ‘reasonable excuse’ you can challenge your penalty, and reasons include the death of a close relative, serious illness and issues with HMRC’s online services. If you’re struggling to pay your bill in full, then head over to the HMRC website, where you might be able to set up a payment plan, under a ‘Time to Pay’ arrangement.”
Claire Trott, Head of Advice at St. James’s Place, noted that pressure is increasing for those who still haven’t submitted their tax return. She went on to caution: “While completing a tax return is often a dreaded task, and one may choose to put it off, getting it sorted now could save you from significant financial penalties down the line.”, reports the Daily Record.
“Up until now, late filers have faced a one-off fine of £100, but from today the consequences will become even greater. The £10 a day penalty will continue for 90 days, potentially adding up to £900 if the return is not submitted during this period.
“Further penalties of 5% of the tax due or £300 (whichever is greater) will apply at both the six month and 12 month mark for those who still haven’t filed.”
Those registered for Self Assessment must file a return regardless of whether they owe tax or not, so ignoring reminders from HMRC could be a costly mistake. Ms Trott further mentioned that filing your tax return promptly won’t reverse any current penalties you’ve received, but it will stop additional charges from racking up.
She advised: “The quickest and simplest way to do this is to complete HMRC’s online form. While the process may seem daunting, there are plenty of tips and guidance available on the HMRC website, and if your finances are particularly complex, speaking to a financial adviser is always a good option for those who are able.
“With today’s penalties likely to cause alarm for those who are unaware, the most important thing is not to rush the return process as this could cause you to leave out vital information that could result in paying more tax than necessary.
“There are a number of details – such as gift aid payments, and necessary work expenses – that can be easy to forget about when filing a return but can amount to significant tax relief. It’s important to take time to include all relevant information to ensure you receive the full tax relief you’re entitled to.”
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