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Self assessment penalties are changing: a reminder

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HMRC have flagged new penalties taking effect this autumn for late tax returns and late payments by individuals and businesses:

‘The new penalties for late self assessment returns are:

an initial £100 fixed penalty, which will now apply even if there is no tax to pay, or if the tax due is paid on time;

  • after 3 months, additional daily penalties of £10 per day, up to a maximum of £900;
  • after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater; and
  • after 12 months, another 5% or £300 charge, whichever is greater. In serious cases, the penalty after 12 months can be up to 100% of the tax due.’

New penalties for paying late are 5% of the tax unpaid at 30 days, 6 months and 12 months, HMRC added.

‘The tax return deadlines remain unchanged – 31 October for paper and 31 January for online returns. The deadline for paying any tax due also remains the same at 31 January.’

Detailed guidance is provided on the HMRC website