Late filing penalties
HMRC impose penalties for a number of self-assessment issues, including late filing and payment.
The penalties for late submission of your personal tax returns can be horrendous.
Previously the penalties for 1 day late were £100 another £100 for over 6 months late.
Now the penalties for the same offence totals £1,300 plus 5% of any tax you owe according to your Tax Return.
Request a Review
Only if you have a reasonable excuse for missing the deadline will HMRC cancel the penalty.
Where HMRC refuses to accept an appeal the usual options are to withdraw it or ask First-tier Tribunal to consider it instead
This review is open to most situations where HMRC issues an assessment or make a decision you disagree with.
Special circumstances rule gives HMRC discretion to reduce the penalty where it feels that it would not be right for it to pursue payment.
The reasons given for late filing or late payment need to be in effect throughout the overdue period, otherwise it’s likely that the penalties will still stand.
Some examples of “reasonable excuses” are as follows :
– Unexpectedly taken into hospital
– Suffering a serious/life-threatening illness
– The death of a partner or close family member
– Hardware or software issues whilst completing your tax return
As your trusted Wellingborough accountants, we are ideally placed to help with further advise on this or other accountancy matters. So contact us today on 01933 227711.