Date posted: 12th Feb 2024
HMRC estimates that 1.1 million taxpayers missed the deadline for filing their 2022/23 tax return, on 31 January 2024.
HMRC will now automatically issue those 1.1 million taxpayers with fines. This will total £110m of fines raised by HMRC, for this filing deadline alone. There may be mitigating circumstances for some of these cases (so the penalty may be withdrawn) but that is an extraordinary amount of money for the taxpayers to simply “donate” to HMRC.
Where the tax return and/or tax payment remain outstanding, further penalties will be due, for both late payment and/or non-compliance, as follows:
- 5% late payment penalty where any tax due for 2022/23 is not paid within 30 days of 31 January 2024.
- From 1 May 2024, £10 daily penalties will be imposed, for 90 days.
- After six months, a further late filing penalty will be imposed – this will be 5% of the tax due or £300 – whichever is greater.
- After six months, a further 5% late payment penalty will be imposed on any 2022/23 tax due.
- After twelve months, a further late filing penalty will be imposed – this will be 5% of the tax due or £300 – whichever is greater.
- After twelve months, a further 5% late payment penalty will be imposed on any 2022/23 tax due.
- Interest will also accrue on late payments of tax, fines and penalties at almost 8% p.a.
Persistent non-compliance could lead to HMRC issuing a determination (More details on this here) which means that HMRC are legally entitled to collect their estimate of tax due.
We would urge anyone with outstanding tax returns, to deal with this, as soon as possible.
If you need assistance with your self assessment obligations, please give us a call.
