'£10 daily fine' warning as HMRC tax deadline passes

Steven Smith
·2-min read

Brits are being warned about a £10 daily fine now that a key tax deadline has passed. The rule affects anyone who uses self-assessment to file a tax return with HMRC.

Andy Wood, from Crypto Tax Degens, said: "As the May 1 deadline for late tax returns with HMRC passes, Brits need to be aware of the substantial penalties they face. Failure to submit self-assessment for the 2022/2023 tax year by this deadline can result in significant financial consequences.

"Failure to file self-assessment for the 2022/2023 tax year incurs a hefty £10 daily fine on top of the initial £100 fine for missing the January deadline. This means individuals could face a daily penalty accumulating into hundreds of pounds.

"While most late-filers have settled their dues, additional fines can accumulate for errors or late submissions, potentially adding considerable amounts onto the final tax bill. Taxpayers must ensure accuracy and timeliness in their submissions to avoid these extra costs.

"Understanding the consequences is vital. From the immediate £100 penalty for late filing to fines of up to £900 for returns over three months late, the financial impact can be significant and should not be underestimated.

"Moreover, late payment attracts penalties starting at 5% of the owed taxes, increasing over time. This can substantially increase the total amount owed, making it essential for taxpayers to plan their finances accordingly.

"Accuracy is paramount. Inaccuracies in tax returns can result in fines ranging from 0% to 100% of the unpaid taxes, depending on severity. Therefore, taxpayers should double-check their submissions to avoid potential penalties.

"Additionally, failure to notify HMRC of tax status changes can lead to penalties equivalent to inaccuracies. This can occur when individuals or businesses fail to register for VAT or self-assessment on time, leading to further financial implications.

"In light of these potential penalties, Brits must heed these warnings and ensure timely, accurate filing to avoid unnecessary financial strain. It's essential to stay informed and proactive in meeting tax obligations to prevent additional costs."

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