The deadline for filing self- assessment tax returns for 2014/2015 was 31 January 2016 and anyone who has not yet filed their return will have been stacking up penalties which could be circa £1,000 y the end of July.
This is made up of a £100 fixed penalty plus further late filing penalties of £10 per day, for a maximum of 90 days, which started to kick in from 1 May 2016. Further penalties of at least £300 apply if the return is not filed by 31 July 2016.
Anthony Thomas, Chairman of the Low Incomes Tax Reform Group (LITRG), said “Automatic penalties for late submission of self-assessment tax returns take no account of the amount of tax an individual owes. They are the same for everyone – even if you owe nothing at all or are owed tax back. Those on low incomes who may be struggling to deal with the tax system alone can very easily fall foul of them simply due to being insufficiently aware of their tax obligations.
“Importantly, the fines can be appealed against if you have a reasonable excuse for filing the return late. This might include situations such as prolonged ill-health, bereavement, or family breakdown – to give just a few examples”.
