HM Revenue and Customs (HMRC) has confirmed that UK households still failing to file their Self Assessment tax returns will face daily £10 penalties throughout July. These charges apply to anyone who missed the January 31 deadline and have not yet submitted their return.
Late filers already received an automatic £100 fixed penalty after the deadline, regardless of whether they owed tax. Now, additional daily penalties of £10 per day are being imposed, up to a maximum of £900. HMRC began issuing these daily penalties in May, three months after the original deadline, and they continue into July for those still non-compliant.
How the Penalties Accumulate
According to HMRC, the late filing penalty structure is as follows: an initial £100 penalty; after three months, additional daily penalties of £10 per day (maximum £900); after six months, a further penalty of 5% of the tax due or £300, whichever is greater; and after 12 months, another 5% or £300 charge, again whichever is greater.
Late payment of tax also incurs penalties: 5% of the unpaid tax at 30 days, six months, and 12 months. Interest is charged on the amount owed in addition to these penalties.
Avoiding Further Charges
HMRC advises: “To avoid this, send your Self Assessment tax return as soon as possible. All partners will be charged a penalty if a partnership tax return is late.” Payments must be made within 30 days of the penalty notice date, and interest applies if paid after the deadline. If the deadline falls on a weekend or bank holiday, payment should reach HMRC on the last working day before, unless using faster payments.
Penalties can be paid via online banking, bank transfer, direct debit, at a bank or building society, or by cheque through the post. Myrtle Lloyd, HMRC’s Chief Customer Officer, said after the January deadline: “Thank you to the millions of people and agents who filed their Self Assessment tax return and paid any tax owed by 31 January. Anyone who missed the deadline should file their return as soon as possible, as penalties and late payment interest may be charged.”
