Self Assessment Tax Return – Penalties

For individuals within self-assessment, the filing deadline for the submission of the  2018/19 tax return is fast approaching.

The submission deadlines is 31 October 2019 for paper forms and 31 January 2020 for online returns.

Any outstanding tax due is payable by 31 January 2020.

The penalties levied by HM Revenue & Customs for late submission of tax returns are as follows:

1. 1 day late (i.e. for filings on or after 1 Feb 2020)- £100
2. More than 3 months late (i.e. from 1 May 2020)- £10 for each additional day (capped at 90 days) on top of the £100 initial fine- so a maximum additional £900
3. 6 Months late. (i.e. from 1 August 2020) the higher of £300 and 5% of the tax due, on top of the penalties above.
4. 12 months late. (i.e. from 1 Feb 2021) An additional £300 fine, or 5% of the tax due, on top of the above penalties.

The deadline for payment of the outstanding tax is 31 January 2020, unless you are paying through PAYE and your coding notice has been amended.

If you miss the payment deadline, you will also be charged interest from the date the payment was due. The rate of interest is currently 3.25%

Additional penalties are also applicable for late payment as follows:

1. After 30 days (i.e. from 2 March 2020 – 5% of the outstanding tax
2. After six months (i.e. from 31 July 2020- a further 5%)
3. After 12 months (i.e. 31 January 2021) – an additional 5%

These charges are in addition to the penalties for last submission of the tax return late as highlighted above.

Need to submit a tax return for the first time for 2018/19?  Hurry to register!

5 October 2019 is the date by which you need to notify HMRC that you have income that has not been taxed or that you have capital gains in excess of £12,000 . This is so that HMRC can register you for self-assessment and send you a notice to file a tax return. If you commenced self-employment in the 2018/19 tax year, you are required to register with HMRC by this date.