Any outstanding 2018/19 Tax Liabilities must be paid before the end of February 2020 to avoid late payments penalties being issued.
Taxpayers potentially face two separate penalties, one for the late filling of their tax return and another for late payment of taxes owed in the coming weeks.
For late payments, taxpayers have until the end of February to send any outstanding tax owed to HM Revenue & Customs (HMRC) or they will be asked to pay penalties as follows.
| Late payment | Penalty |
| 30 days late | 5% of tax due |
| 6 months late | 5% of tax outstanding at that date |
| 12 months late | 5% of tax outstanding at that date |
HMRC will also charge interest at 3.25% on any tax owing and on the penalties and charges incurred as a result of the late payment of tax owed.
Some taxpayers may be able to make a ‘time to pay agreement’ with HMRC, which could mean that a penalty is suspended. However, the taxpayer will become liable to the penalty if the agreement is broken.
Those concerned about the late filling of a tax return following the final deadline at the end of January may already have been issued with an automatic £100 fine, but if they continue to not submit a return when required to do so they will be penalised as followed.
| Late filing | Penalty |
| Miss filing deadline | £100 |
| 3 months late | Daily penalty £10 per day for up to 90 days (max £900) |
| 6 months late | 5% of tax due or £300, if greater* |
| 12 months late | 5% or £300 if greater*, unless the taxpayer is held to be deliberately withholding information that would enable HMRC to assess the tax due. |
| 12 months & taxpayer deliberately withholds information | Based on behaviour:
|
* Subject to multi-penalty rule paragraph 17(3) of Sch FA 2009
Where a person is late with both the return and tax is still owing, they will be liable for penalties and charges on both.
If you are concerned about meeting or having missed either deadline and fear being fined, please contact our Tax team – tax@cogentaccountants.co.uk – to see how we can help.