From Friday 17 February, HMRC are sending out penalty notices to all taxpayers who failed to file their 2010/11 returns on time. Penalties of up to £1,600 have been introduced to tackle the growing problem of late filing and non-filing of self-assessment tax returns.
The new penalty regime has four elements, as follows:
• £100 fine from 3 February (after 31 January deadline was extended due to HMRC strikes)
• £10 a day fine from 1 May for 90 days – a maximum of £900
• £300 fine on 1 August (or 5% of the tax due if that is more)
• £300 fine on 1 February the following year (or 5% of the tax due if that is more).
These fines are also no longer capped at the tax owed, so taxpayers could face fines of up to £1,600 – even if they owe nothing or if HMRC owes them a refund.