Taxpayers who have not yet filed their overdue self-assessment tax returns have days before they’re hit with additional late filing penalties, an expert has warned.
Starting May 1, a late filing penalty for the 2022/23 tax year of £10 per day will be incurred, up to a maximum of £900.
This is in addition to the £100 late filing penalty for missing the deadline for filing self-assessment tax returns online by January 31.
According to figures published by HMRC, an estimated 1.1 million customers missed the January deadline this year.
Additional penalties are also levied for late payment of the tax due. This includes five percent of the tax due at 30 days, six months, and 12 months, along with interest charged on the unpaid tax at 7.75 percent – the highest rate in over 20 years.
Lucy Woodward, partner in the private wealth team at Saffery, commented: “The £100 penalty triggered the moment the clock strikes 12am on February 1 if Self Assessment returns have not been filed is potentially nothing compared to the late penalties that can rack up each day they remain unsubmitted from May 1.
“Taxpayers should do everything in their power to ensure they complete their returns and pay any outstanding tax due as soon as possible, given interest is being incurred each day on the unpaid tax at a rate of 7.75 percent per annum.”
Ms Woodward added: “Especially before the end of April and the substantial step change in the size of the penalty levied by HMRC.”
Taxpayers who are struggling to complete their returns can still access HMRC’s helpline if they need it.
Ms Woodward explained: “HMRC reversed its decision in March to close the helpline between April and September in favour of online support services, following an outcry from many customers.”
However, she noted: “The direction of travel is still clearly towards more emphasis on self-service through HMRC’s online services and resources.
“In all likelihood, the helpline’s days are still numbered, despite the recent U-turn by HMRC.
Ms Woodward urged the taxpayers this warning applies to seek professional advice if and where necessary.
She said: “If there are any concerns about being able to pay the tax due, raising it with HMRC as soon as possible may mean some arrangements can be made to help make the payment more manageable.”
HMRC has published a helpsheet for people who need support submitting their returns, here.
