As the Self Assessment deadline for Tax Returns for 2013-14 has now passed; HMRC will begin to start issuing penalty notices to those taxpayers who did not meet the legal requirement to file their returns on time.
A fixed penalty of £100 will be due for all returns which were outstanding at 31 January 2015. This penalty is no longer reduced where the liability is lower than this or where a repayment is due.
HMRC will also start to add £10 daily penalties up to a maximum of 90 days where the return remains outstanding after 3 months (30 April 2015).
Finally, a late payment penalty of 5% of the calculated balancing payment will become due on any tax liability unpaid 30 days after the original due date (by midnight on 2 March 2015).
The late payment penalty will not apply to liabilities covered by a time to pay arrangement so it may be beneficial to urgently contact HMRC to arrange a scheduled payment plan for taxpayers who cannot at present meet their 2013/14 liabilities.