Brexit … now affecting UK Tax Return Late filing penalties

Self Assessment tax returns not submitted by the 31 January deadline, incur an automatic £100 late filing penalty. HMRC do not normally “dilly-dally” when issuing penalty notices, however this year is a bit different. The reason? Brexit.

HMRC are anticipating an increased volume of calls as the 29 March exit (perhaps?) comes ever closer, so have redeployed their resources. As a result, the fixed £100 penalty notices may not now be issued until April 2019 for late filed 2017/18 tax returns. For returns not submitted by 30 April 2019, £10 daily penalties will kick in for up to 90 days in addition to the initial £100 penalty. HMRC’s normally timely penalty notices give a useful warning about this, however the daily pain may already have begun before this drops softly through your letterbox.

HMRC have indicated they will issue daily penalties ‘in appropriate cases’, but professional commentators have expressed concern over the potential delay in notifying taxpayers, and have called for clarity from HMRC, including that they take account of the late notification of the £100 penalty before daily penalties are considered.

If you would like to discuss the Self Assessment penalty regime further, or require assistance in bringing your tax affairs up to date, please get in touch with Lynn Gracie, or your usual AAB contact.