HMRC delays sending out late self-assessment penalty notices

7th March 2019

Penalty notices due to late tax returns are usually sent out in February but HMRC as announced that it is to delay this communication until April.  This could mean that late payment penalties could accrue for those affected.

This year there was a total of 731,186 taxpayers who missed the tax return deadline.  Usually these individuals should expect to pay the £100 late filing penalty and they would be notified of this charge via letter in February.  However, HMRC has stated that these penalty letters will not be issued until April 2019, meaning that those affected could accrue additional penalties simply through not being aware of their late penalty status.

late tax return penalty

The £100 penalty will still be due, but the problem arises because the taxpayer will not know that it has been charged to their tax account.  Once a tax return is over 3 months’ late (1st May) then daily £10 penalties will be charged for each day the return is late, up until a maximum period of 6 months.  At this point, an automatic late filing penalty is issued.  This is at a rate of £300 (or 5% of tax outstanding, whichever is greater).

So it is worth confirming whether or not your tax return was submitted after the deadline of 31st January and, if so, then remain vigilant in checking the post on or around 30th April to ensure you do not accrue additional late payment penalty charges.

 

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