Last year there were 11.5 million self-assessments due, of which seventy percent were submitted by 22 January 2019. Over ninety three percent were filed by the deadline.
The high level of compliance is more than likely attributable in part to the penalties for late returns but more so the public perception that tax compliance is important. We too believe compliance is important so, here is a reminder of the penalties:
The penalty regime for late returns was introduced by schedule 55 Finance Act 2009. The normal deadline for a paper return is 31 October following the end of the tax year. The deadline for an online return is 31 January following the end of the tax year.
The immediate penalty for a late return is £100. Thereafter:
- a penalty calculated at the rate of £10 for each day the failure continues for a period of up to 90 days commencing with the date specified in the notice issued by HMRC. That notice may not be issued earlier than three months after the filing date.
- If the return is outstanding by six months, a further penalty of £300 or 5% of the liability shown in the return.