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HMRC send out Penalty Notices. 14/08/12

HMRC have started to send out additional penalty notices to half a million people who still haven’t sent in their 2010/11 tax returns. New penalties were introduced in April 2011 to boost the incentive to file and reduce the costs to taxpayers of chasing up missing forms.

The penalties being issued from today will be for a minimum £1,200, comprising:

  • the maximum £900 in daily penalties for non-filing
  • a further late-filing penalty of £300 or 5 per cent of the tax due (whichever is higher).

The number of outstanding returns has almost halved in 2012, down to 5.9 per cent, compared to 10.7 per cent in 2011. This means 518,000 fewer penalties are being issued. HMRC has also taken 273,000 people out of Self Assessment this year.

People who receive a late-filing penalty can appeal against it if they think they have a reasonable excuse for not sending their tax return; for example, a family illness or bereavement.

Anyone who has received a late-filing penalty and has not sent in a return, but thinks they don’t need to be in Self Assessment, can still potentially apply to be taken out of Self Assessment.

The penalties being issued over the next few weeks are in addition to £100 late-filing penalties for missing the 31 January filing deadline, which were sent out in late February and early March.

If you have any questions or concerns about outstanding Tax liabilities, contact the ABDS Tax team.

ABDS Chartered Certified Accountants of Southampton.
Tel: 023 8083 6900  E-mail:

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