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I see that various papers have headlines such as "HMRC warns 3.4 million people face fine worth ÂĢ900 after next week".
That's misleading.

Actual penalties for those who have been told to file tax returns but haven't by 31 January are:

  • an initial ÂĢ100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
  • after 3 months, additional daily penalties of ÂĢ10 per day, up to a maximum of ÂĢ900
  • after 6 months, a further penalty of 5% of the tax due or ÂĢ300, whichever is greater
  • after 12 months, another 5% or ÂĢ300 charge, whichever is greater

There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months. If tax remains unpaid after the deadline, interest will also be charged on the amount owed, in addition to the penalties above.

There is an appeal process against fines where someone has an acceptable excuse.

El Loro
@El Loro posted:

I see that various papers have headlines such as "HMRC warns 3.4 million people face fine worth ÂĢ900 after next week".
That's misleading.

Actual penalties for those who have been told to file tax returns but haven't by 31 January are:

  • an initial ÂĢ100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
  • after 3 months, additional daily penalties of ÂĢ10 per day, up to a maximum of ÂĢ900
  • after 6 months, a further penalty of 5% of the tax due or ÂĢ300, whichever is greater
  • after 12 months, another 5% or ÂĢ300 charge, whichever is greater

There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months. If tax remains unpaid after the deadline, interest will also be charged on the amount owed, in addition to the penalties above.

There is an appeal process against fines where someone has an acceptable excuse.

It's very misleading El...and tbh, I think they have a damned cheek given their failings of late

slimfern
@slimfern posted:

It's very misleading El...and tbh, I think they have a damned cheek given their failings of late

I used to phone HMRC on the agents phone number from time to time. However getting through to them on the phone is no better for agents than for tax payers. As a result I try to get a client to ring HMRC early in the morning where I consider that the client is sufficiently knowledgeable to do so.
I keep a track online as to if clients have been sent statements for the correct amount of tax and also paid their tax. Last year I found that a client hadn't apparently paid the tax due by the end of January. That was unlike my client so I rang her. She was puzzled and said that she was sure it had been paid. I had another look but at her husband's tax account and discovered that the payment had gone through his account. So I rang the client back and she said that she had asked her husband to pay on her behalf. It was clear that he had used his tax reference on the payment rather than hers. So I told her that she and he would need to ring HMRC to get this sorted out. She did and it was sorted out.

I would ring HMRC if the client would struggle or if it was about a complex matter or if it was as a result of an error I had made (not that I've needed to but no accountant is infallible).

El Loro

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