HMRC Penalty 1



When a 2016/17 self-assessment tax return has not been filed by 31st January 2018, a £100 penalty will already have automatically been charged. Online returns with a filing date of 31st January 2018 will incur additional penalties from 1st May 2018. Penalties of £10 per day will be chargeable for up to 90 days.

If a 2016/17 tax return has still not been filed by 31st July 2018, the initial penalty of £100 and the daily penalties chargeable will amount to a total of £1000 and in addition, a further penalty of at least £300 becomes chargeable. These automatic penalties take no account of the amount of tax an individual owes. Even if you owe no tax at all or you are due a refund the penalties will still apply.

If you believe you do not need to be in self-assessment, for example, if you are an employee within a PAYE scheme or because you have become non-resident you can ask HMRC to withdraw the notice to file a return.  Such an application must be made within two years of the end of the tax year to which the return relates. If a return cannot be cancelled, the late filing penalties can be appealed if there is a reasonable excuse for late filing. Examples are; prolonged ill-health or bereavement.

Where a client has failed to register for self-assessment for 2016/17 specific rules apply where there is a failure to notify. Penalties are based on the amount of tax lost as a result of the failure to notify and increase if a deliberate behaviour is involved.

Here at Your Tax Shop we pride ourselves on our appeals processes and expertise. We have a great success rate with our appeals and can help you if you’re in a sticky situation!

If you have a tax query, why not contact one of the team at Your Tax Shop based in Tameside? Our team of experts have a wealth of experience in penalties and appeals as well as many other areas!

Speak to one of our friendly tax advisors at one of our offices in Tameside:

Ashton office – 0161 339 5689

Mossley office – 01457 837744