⚠️ If you have an outstanding Self Assessment tax return, or know someone who has been putting one off, this is worth reading. HMRC has been stepping up its enforcement activity, and the consequences of late filing and late payment are more costly than many people realise.
Under the current penalty system:
📌 The initial £100 fixed penalty kicks in immediately on 31 January, even if no tax is owed
📌 After three months, daily penalties of £10 per day can apply for up to 90 days
📌 After six and twelve months, further percentage-based penalties are added on top
Interest on late payments is also rising in line with base rate movements, currently sitting at 7.25% per annum, a far cry from the low rates that made it tempting to delay in previous years.
HMRC has also begun issuing "nudge letters" to individuals it believes may have undeclared income or incorrect returns. Ignoring these is not advisable.
The message is simple: if you're behind on your tax affairs, the cost of doing nothing is rising. HMRC is less willing to waive penalties than it once was, and the interest clock doesn't stop.
If you've received a letter from HMRC, have an overdue return, or just want to make sure you're fully up to date, get in touch with us and we'll help you get sorted as quickly as possible.