Late Filing Penalties
You should already have received an automatic filing penalty of £100. But from 1st May, daily penalties of £10 will start to apply in addition to the initial £100 penalty. They will be capped at £900 but further penalties will start to apply if the delay reaches 6 months.
Interest on the late payment of any tax liability will also be accruing. The current rate of interest charged by HMRC can be found on their website.
Late payment penalties
Late payment penalties are raised where the tax is unpaid for 30 days after the due date. A second penalty is created where the tax is unpaid 30 days and 5 months after the due date. Further penalties arise for persistent delays.
The penalties are charged at 5% of the amount of tax unpaid.
It sounds like you’re struggling to keep on top of your affairs. If you’d like any assistance, please contact us and we can get you in touch with your local TaxAssist Accountant. They can get your affairs up-to-date and explore if there are grounds to appeal against any penalties too.
By Jo Nockels
Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.