Penalties for Late Self-Assessment Tax Returns and Tax Payments in 2024
Published: 2024-03-26 10:35:10

Guide on the changes to penalties for late self-assessment tax returns and tax payments in 2024, you can focus on the updates and implications of late filing and payment penalties based on the provided sources. Here is a structured outline to help you develop content for your guide:

Guide to Changes in Penalties for Late [Self-Assessment Tax Returns](https://www.dnsaccountantsfranchise.co.uk/find-an-accountants/self-assessment-tax-return) and Tax Payments in 2024

Introduction
In 2024, there have been significant updates to the penalties associated with late self-assessment tax returns and tax payments. Understanding these changes is crucial for taxpayers to avoid unnecessary fines and complications.

Changes in Penalties
1. Late Filing Penalties:
   - The penalty for late filing of a tax return can be up to £100 if the return is up to 3 months late.
   - After three months, a further penalty of £10 per day can be imposed for up to 90 days, with a maximum of £900.
   - After six months, an additional penalty of 5% of the tax due or £300 (whichever is higher) is applicable.
   - After 12 months, another 5% or £300 penalty (whichever is higher) is imposed on top of previous penalties.

2. **Late Payment Penalties**:
   - Late payment penalties can be significant, starting at 5% of the unpaid taxes after 30 days.
   - Additional penalties are incurred after six months and twelve months if taxes remain unpaid.

3. Interest on Late Payments:
   - In addition to penalties, interest is charged on late payments.

Implications for Taxpayers
- Taxpayers who miss the self-assessment tax return deadline face automatic fixed penalties even if no tax is due.
- Having a valid excuse for missing the deadline is essential to appeal against penalties.
- HMRC can pursue payment through legal means if tax returns are not filed as required.

Who Needs to Submit a Self-Assessment Tax Return?
- Individuals who were self-employed, in partnerships, directors of limited companies, earned over £100,000, received income from various sources, or had capital gains tax obligations are required to file self-assessment tax returns.

Need for Assistance
If you require help navigating these changes or managing your accounts effectively, DNS Accountants can provide professional support and guidance tailored to your needs.

Conclusion
Staying informed about the changes in penalties for late self-assessment tax returns and payments in 2024 is essential for all taxpayers. By understanding these updates and meeting deadlines promptly, individuals can avoid unnecessary fines and ensure compliance with HMRC regulations.

This guide provides an overview of the key changes in penalties and requirements for [self-assessment tax returns](https://www.dnsaccountantsfranchise.co.uk/find-an-accountants/self-assessment-tax-return) in 2024. For detailed assistance or personalized support with your accounts, consider reaching out to DNS Accountants for professional help.

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