HMRC have updated their guidance on penalties for failure to file annual and occasional returns and documents on time. This applies to Income Tax, Capital Gains Tax, The Registered Pension Scheme, Bank Payroll Tax, Annual Tax on Enveloped Dwellings and Stamp Duty Reserve Tax.

Penalties are:

1. An initial penalty of £100 on the day after the date the tax return or document was due.

2. Daily penalties of £10 per day for 90 days after the return or document was 3 months late.

3. A further penalty of £300 or 5% of HMRC’s estimate of the liability to tax and NI after it is 6 months late.

A second ‘further penalty’ of £300 or 5% of HMRC’s estimate of liability to tax and NI after it is 12 months late.