New SA late filing and late payment penalties

Self Assessment returns for 2010/11 onwards will be affected by the new late filing and late payment penalties summarised below:

  • Fixed £100 penalty for late filing, even if there is no tax to pay/due
  • After 3 months, daily penalties of £10 per day (maximum £900) will apply
  • After 6 months, an additional penalty of 5% of the tax due or £300, whatever is the greater
  • After 12 months a further 5% penalty or £300 is payable; however, in more serious cases a maximum penalty of 100% of the tax at risk can be charged.

If the tax is paid late, HMRC will also charge a 5% penalty after 30 days, 6 months and 12 months.  Interest is also due on the tax paid late.

Advisors should ensure that their clients are aware of the changes in the penalty regime for 2010/11 onwards with the 31 October 2011 filing date for paper returns and 31 January 2012 for online returns.