According to HM Revenue & Customs approximately 746,000 self-assessment tax returns for the 2017-18 tax year were not filed by the 31 January 2019 filing deadline.

As a result anyone who has missed the deadline will automatically be issued with a £100 late penalty notice. This has to be paid irrespective of your tax position. The penalty notices are normally issued in February to all of those who missed the deadline.

HM Revenue & Customs have announced that due to the expected demands and workload of the various offices in the run up to Brexit, the notices will be sent out later this year. HM Revenue & Customs anticipate sending out the £100 penalty demands by the end of April or earlier if the Withdrawal Agreement is agreed.

This is all well and good, however, where individuals use the penalty notice as a reminder to submit their tax return, if they do not receive it until the end of April or at the beginning of May 2019, there will be further penalties charged. If your tax return is still outstanding as at 1 May 2019, a penalty of £10 per day will be charged for a maximum of 90 days. For example, if you submit your tax return on the 11 May 2019, a further penalty of £100 will be charged. This is in addition to the late filing penalty and again has to be paid even if you do not have a tax liability to settle. By being late with your tax return could prove to be very costly as further penalties are levied when the tax return is submitted six months after the filing deadline.

If you are one of those individuals who still need to submit your 2017-18 tax return, please do so as soon as possible to avoid further penalties being charged.

Here at Plus Accounting we will be very happy to help you with the preparation of your self-assessment tax return with our personal tax compliance service.

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Author: Anthony Barron, Tax Manager, Plus Accounting

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