HMRC has confirmed via its regular Agent Update communication, that penalty notices in respect of the late filing of self-assessment tax returns for 2017/18 will be issued later than usual this year.
Generally, penalty notices are issued towards the end of February following the January filing deadline, but due to the expected increase in demand for HMRC services as the UK leaves the EU, the issuing of notices is being delayed this year. HMRC has confirmed that the latest that the notices will be issued is the end of April 2019.
Specifically, HMRC has confirmed that penalty notices will be issued before the onset of daily penalties which are charged at £10 per day if a return remains outstanding 3 months after the filing deadline, subject to a maximum of £900. Further penalties are charged for returns that remain outstanding past this deadline.
In view of the delay in taxpayers being notified of late filing penalties, it is important for advisers to review their client's positions so as to ensure that returns can be filed before daily penalties start to accrue.
