Late tax form returners to be hit with daily charges from next month

(2 minutes to read)

For anyone who did not file and pay their 2016/17 Self-Assessment tax return form by the 31st January 2018 deadline, they will already have been charged a penalty of £100 and now a daily penalty will soon come into force.

The Low Incomes Tax Reform Group (LITRG) are warning late tax form returners that from the end of April, they will be charged a daily penalty.

According to HMRC, it has been estimated that as many as 745,588 people missed the tax return deadline – for those people, they would already have been charged a £100 penalty and from the end of April will also have to pay a daily penalty on top of that if it is more than three months late: for online returns with a 31st January 2018 filing date that would be from 1st May 2018.

The £10 daily penalties continue to be chargeable for up to 90 days unless the taxpayer submits their return within that time.

The late submission penalties are as follows:

  • £100 – applied immediately the form is late
  • £10 per day – charged once the return is three months late for a maximum of 90 days
  • The higher of £300 or five per cent of the tax due – applied if the form is six months late; and
  • A further £300 or five per cent of the tax due (whichever is higher) – applied if the form is 12 months late

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Robin Williamson, LITRG Technical Director, commented, “If a tax return for 2016/17 has still not been filed by 31 July 2018, the initial penalty of £100 and the daily penalties chargeable will amount to a total of £1,000, in addition to which 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 nothing or are owed tax back.

‘’If you have registered for Self-Assessment you must submit a tax return or inform HMRC that you no longer fall under the Self-Assessment criteria and ask them to agree to cancel the requirement for the tax return. If they do this, then any late filing penalties will also be abated.”

Williamson added, “If someone believes they do not need to be in Self-Assessment, for example because their taxes are fully dealt with under the Pay As You Earn system or simple assessment, or because they have left the UK, they should be able to ask HMRC to withdraw the notice to file a tax return. Such an application must be made within two years of the end of the tax year to which the return relates.

“Even if they cannot get HMRC to cancel the requirement for the tax return to be filed, late filing penalties can be appealed if there is a reasonable excuse for filing late such as prolonged ill-heath, bereavement or family breakdown.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

Why Dolan Accountancy?

Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours.
  • Free use of Contractor Umbrella – With changes in Public Sector IR35 Legislation we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella.
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams.
  • Free Access to FreeAgent – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that we offer all of our clients access to FreeAgent, free of charge.
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year.
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status.
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative.
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few.
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If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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