HMRC potential penalty

MoneySavingExpert12345

Hi,

I have just this month filed self-assesment tax returns for both 15/16 and 16/17 tax years which I was not aware I needed to complete (lesson learnt)

Shortly after filing, i received a letter through containing a late payment penalty of around £350 for the 15/16 tax year.

However when looking online, it appears there should be a late payment penalty, but also a late filing penalty of around £1500 with the filing deadline being so long ago.

However I have not received this, only the smaller late payment fine.

I called up HMRC today and they confirmed if I paid the full balance of both returns along with the £350 fine, there would be nothing further to pay and my account would be clear.

I am now concerned about what to do, do i assume this has been waivered, or missed? I am concerned that it if is an error, I may receive a penalty for £1500 in 3/6/9months time for example, or even more.

Would anyone have any knowledge/experience/advice on this?

It seems odd i received the late payment penalty so promptly and yet have not received anything for filing late.

Regards

BoGoF

When was the 15/16 tax return issued?

MoneySavingExpert12345

Both returns were filed about two weeks ago

TheCyclingProgrammer

If you didn’t receive a notice to file a return for 15/16 before 31 Jan 17 then there wouldn’t have been any obligation to file a return by that date and therefore there wouldn’t be a late filing penalty from that date.

If you notified HMRC late and were then sent a tax return I believe you normally have 3 months from the date of issue if it is received after the normal filing deadline.

If you owed tax for 15/16 then what you might have received instead is a late notification penalty which is based on the tax due. Could that be it?

MoneySavingExpert12345

Sorry just to clarify:

I only registered for self assesment tax a few months ago, having realised I would have a tax obligation from my time working abroad (which crossed over both the 15/16-16/17 years)

So i registered to self asses at the back end of 2017 having realised this.

Then submitted both returns at the start of Jan.

And paid them today along with a late payment penalty of £350

Thanks
Simon

Mahsroh

MoneySavingExpert12345 wrote: »

Sorry just to clarify:

I only registered for self assesment tax a few months ago, having realised I would have a tax obligation from my time working abroad (which crossed over both the 15/16-16/17 years)

So i registered to self asses at the back end of 2017 having realised this.

Then submitted both returns at the start of Jan.

And paid them today along with a late payment penalty of £350

Thanks
Simon

Based on a similar experience I've had in the past - I cant say 100% but I suspect that will be the end of it. No more fines to pay provided that you submit accurate tax returns on time in future.

MoneySavingExpert12345

Thanks Mahsro.

Does anyone else have any knowledge/experience in a similar situation?

TheCyclingProgrammer

Are these penalties described on your statement as late filing or late notification penalties? Based on what you’ve said they should be late notification, not late filing.

Late filing is an automatic £100 penalty incurred after 31 Jan when you receive a notice to file a return and fail to do so. This penalty will keep increasing until you finally file.

Late notification is based instead on any undeclared tax. When you register for self assessment to file a return for a previous year the return itself usually has a deadline 3 months from the date you receive the late notification to file.

MoneySavingExpert12345

It was a late payment penalty I have received in the post, 100% this is what it was described as on the letter.

I have not received any late notification or filing penalties.

Pennywise

You'll have been sent a "notice to complete" a tax return for the 15/16 year - what was the date of issue. (will be the date at the top of the notice).

TheCyclingProgrammer

MoneySavingExpert12345 wrote: »

It was a late payment penalty I have received in the post, 100% this is what it was described as on the letter.

I have not received any late notification or filing penalties.

A late payment penalty (actually a surcharge and interest probably) is expected, but I don’t think you have any need to worry about late filing penalties (which are the ones that can really mount up regardless of what you owed) for the reasons outlined above.

It’s perfectly possible that HMRC have decided not to apply any late notification penalties as you’ve presumably made an honest mistake and have disclosed this and submitted a return promptly after realising.

As Pennywise asks, what was the date of your notice to file for 15/16?

Based on everything so far I’d say what you’ve been told by HMRC is correct.