HMRC is beginning to issue fines for missing the self-assessment tax returns. This is earlier than was expected.
The penalty for not filing a tax return by 31st January 2019 is £100.
In February 2019, HMRC announced that the issuing of late filing notices would be delayed because of Brexit-related pressures. The Association of Taxation Technicians (ATT) has expressed concerns about the time delay as the £100 penalty notice is a prompt to tax payers to submit their outstanding tax returns.
Any delay in issuing the prompt will also increase the possibility of receiving daily penalties. Daily penalties will start to build up at the rate of £10 for every day the tax return remains outstanding after 3 months. That means penalties would start on 1st May 2019.
Jon Stride of ATT said: “The ATT is pleased that HMRC have now started to issue penalty notices and have not delayed the exercise to the end of April, which was originally a possibility. However, it will take HMRC until April 12 2019 to issue all the penalty letters. This gives taxpayers little over two weeks to submit their return before the daily penalty regime commences. Anyone who has yet to file their 2017/2018 tax return should do so as a matter of urgency. They will not be able to avoid the £100 penalty unless they have a reasonable excuse for being late, but getting the return filed online by no later than April 30 2019 will mean that they will avoid the additional £10 per day.”