Date posted: 26th Jun 2023
If you have not yet completed your 2021/22 tax return, then you will be accruing daily penalties of £10.
This could be a significant amount given that you will have already incurred the £100 late filing penalty as well as the possibility of late payment charges and interest.
Example
As an example, Bob did not complete his 2021/22 tax return until 19 June 2023 as he was too busy at work. When he completed this, he had a tax liability of £10,000 which he paid immediately. However, he is likely to receive a further demand from HMRC in the region of £1,400 in relation to the late payment charges, interest and late filing penalties. Being too busy at work is unlikely to be regarded as a reasonable excuse by HMRC.
If you have a reasonable excuse for not completing your tax return on time, then we can ask HMRC to cancel any penalties. However, this is at the discretion of HMRC. HMRC have rejected a number of excuses from taxpayers over the years ranging from the death of a goldfish to being cursed by their mother-in-law.
If you need assistance with your tax compliance obligations, please give us a call.
