Additional late filing penalties for self assessment tax returns from 1^st May 2024

From 1^st May, taxpayers who have not yet filed overdue self assessment tax returns for 2022-23 will face an additional late filing penalty of £10 per day, up to a maximum of £900.

This is in addition to the £100 late filing penalty for missing the deadline for filing self assessment tax returns online by 31^st January. An estimated 1.1 million taxpayers missed the 31^st January deadline this year, giving HMRC a tidy £110m in revenue. The £10 penalties accrue on a daily basis so they can be punitive and quickly mount up.

Additional penalties are also levied for late payment of the tax due – 5% of the tax due at 30 days, six months, and 12 months – along with interest charged on the unpaid tax at 7.75%, the highest rate in over 20 years. 

With 1^st May less than a week to go, it is crucial to file a tax return or try to contact HMRC to discuss your situation as there can be exceptional circumstances where a penalty is waived.

As always, if you need help and advice, please get in touch and we will be happy to help.