The deadline for submitting 2016-17 Self Assessment tax returns online is 31 January 2018. All filings should now be made online as the deadline for submitting paper returns, 31 October 2017 is very close. Taxpayers that submit a paper return after the deadline will be hit with an automatic £100 late-filing penalty. This penalty will apply even if no tax is due or if any tax due is paid on time.
The 31 January 2018 is also an important payment date for taxes due. On this date, the balancing payment of any Self Assessment liability for 2016-17 is due, plus any payment on account due for the current 2017-18 tax year.
Any taxpayers that are filing online for the first time should ensure that they register to use HMRC’s Self Assessment Online service as soon as possible. Once registered it can take up to seven working days for an activation code to be sent by mail.
The following penalties apply to Self Assessment returns that are filed late:
From day one: taxpayers will be charged a £100 penalty even if they have no tax to pay or have paid any tax due on time.
From 3 months late: taxpayers will be charged an automatic daily penalty of £10 per day up to a £900 maximum.
From 6 months late: taxpayers will be charged additional penalties which are the greater of 5% of tax due or £300.
Over 12 months late: there are additional penalties based on greater of 5% of tax due or £300. In serious cases this penalty may be increased up to 100% of tax due.
Taxpayers that wish to have their debts coded out must ensure their online Self Assessment return is filed by 30 December 2017 in order to have a qualifying balancing payment collected using their PAYE code during 2018-19. The coding applies to certain debts and the amount of debt that can be coded out ranges from £3,000 to £17,000 based on a graduated scale. The maximum coding out allowance applies to taxpayers with earnings exceeding £90,000.