HMRC have recently advised that they have delayed issuing penalty notices to taxpayers who failed to file their 2018 Self-Assessment Tax Returns by the 31 January 2019 deadline.

Their reason?  – to free up call-centre staff for Brexit queries.

Please note that normally the £100 penalty notices are issued by a central computer system in February. This obviously creates high call volumes from customers and agents.

The latest date by which penalty notices will be issued is the end of April. These should therefore include the £100 late filing penalty. If you have not paid your tax as well, then there will be interest, (currently 3.25% per annum) and a 5% surcharge on the outstanding amount. These cannot be calculated until HMRC have received the Tax Return.

If you file your Tax Return three months late, then daily penalties will accrue.  These are charged at £10 per day for up to 90 days – taking you through to the end of July.  If the Tax Return has still not been filed, then a further 5% of the outstanding tax or £300 will accrue.

Thus, for those taxpayers who have procrastinated, late filing penalties can eventually total £1,200, ignoring any late payment penalties.

If HMRC are going to delay issuing notices, then more individuals than normal will be hit by daily penalties.

Our advice would be don’t hide your head in the sand, pretend that they’ve forgotten you or hope that they won’t come a-knocking.

We can help you get back up-to-date if you need any help with your paperwork.

Lucy Orrow - Lambert Chapman Senior Tax Manager


> Posted by Lucy Orrow





Disclaimer: The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.


Lambert Chapman Chartered Accountants

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