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Self Assessment penalties again

Self Assessment penalties again

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2013/14 Paper Tax Return was received by HMRC on 31st July 2015 (confirmed on their website).

We have received penalty determination from HMRC showing daily penalties and 6 month late filing penalty. No arguments about the daily penalties.

However, is the 6 month late filing penalty correct? Have been reviewing FA 2009 Sch 55. Section 5 imposes this penalty where the failure continues after end of 6 months beginning with "penalty date".

According to Section 1(4), the "penalty date" is the date on which a penalty is first payable.

Strictly, penalties for paper Returns kick in where they're submitted after 31st October (2014 in this case). However, even if such penalties are charged, are they actually payable before 31st January (2015 in this case)? Should a 6 month late filing penalty apply in this case, where it has been submitted (just) within 6 months of 31st January 2015?

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By stephenkendrew
04th Sep 2015 13:29

the whole of section 1(4) states....

.... “penalty date”, in relation to a return or other document, means the date on which a penalty is first payable for failing to make or deliver it (that is to say, the day after the filing date).

I would suggest the "day after the filing date" will mean 1 November if the return is filed on paper.

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RLI
By lionofludesch
04th Sep 2015 13:54

Three months late

Sadly, I agree.  I think the return is three months later than you thought.

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By Duncan Cameron
04th Sep 2015 18:55

Daily penalties

Why be so defeatist about the daily penalty? Paragraph 27 of this decision: http://www.financeandtaxtribunals.gov.uk/judgmentfiles/j8309/TC04336.pdf suggests you might have a ground of appeal if HMRC have not changed the information contained on penalty notices since last year. Does the notice say when the first £10 was incurred? Perhaps HMRC will cancel everybody's daily penalties if the Donaldson litigation ends in victory for the appellant or perhaps only those taxpayers with unsettled appeals will benefit.

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