HMRC will shortly start issuing penalty notices to those individuals who did not file their returns on time.
A fixed penalty of £100 will be due for all returns which were outstanding at 31 January 2015.
HMRC will also start to add £10 daily penalties up to a maximum of 90 days where the return remains outstanding after 3 months (30 April 2015).
Additionally, HMRC will raise a late payment penalty of 5% of the balance of any tax due for the 2013/14 tax year that remains unpaid 30 days after the original due date i.e. (by midnight on 2 March 2015). It is therefore important to settle your Self Assessment tax/NIC liability for 2013/14 as soon as possible.
You should be aware that the late payment penalty will not apply to liabilities covered by a time to pay arrangement so it may be beneficial to urgently contact HMRC to arrange a scheduled payment plan if you anticipate any payment issues.
If you would like any further advice on this matter please give Sue Stephens a call.
