Higher Fines As Self Assessment Deadline Passes

According to HM Revenue & Customs almost one and a half million people missed HMRC's 31st January filing deadline for self assessment.  This was a substantial decrease on last year's figure.  There are a number of possible reasons for this.  Firstly, people may simply be getting better at submitting their returns.  Secondly, strike action meant the HMRC gave a two day filing extension. Thirdly, following a change in the rules, from this year onwards, fines for late filing are set to dramatically increase.

HMRC will now issue fines for late filed returns, even if there is no tax owed.

The cumulative penalties now levied for late filing are as follows;

- 1 day late: £100

- up to 3 months late: £10 for each day

- 6 months late: £300 or 5% of the tax due (whichever higher)

- 12 months late: £300 or 5% of the tax due (whichever higher). Rising to 100% of the tax due in certain circumstances.

It is now too late to submit either a paper or an online return and the fines will start to accrue.