Warning over new £900 hmrc fines with 'hundreds of thousands' affected

THE LABOUR PARTY GOVERNMENT'S TAX ARM IS BRINGING IN THE NEW FEE FOR LATE SELF ASSESSMENT TAX RETURNS, AMID FEARS "HUNDREDS OF THOUSANDS OF PEOPLE" COULD BE HIT. 10:52, 22 May

2025 A warning has been issued as HRMC brings in new £10 late penalty fees from next year. The Labour Party government's tax arm is bringing in the new fee for late Self Assessment tax

returns, amid fears "hundreds of thousands of people" could be hit. Alastair Douglas, CEO at TotallyMoney, said: "While the initial £100 fine might not have been enough to

encourage some to get going, from today, HMRC will start charging late filers an extra £10 per day. This is on top of the eyewatering 8.5 per cent late payment interest rate on outstanding

balances." He continued: "If in three months' time you still haven't filed your return, the taxman will hit you with a penalty of 5 per cent of the tax due or £300,

whichever is greater. Any penalties need to be paid within 30 days, and can be done in several ways, including Direct Debit, bank transfer, or by cheque." READ MORE UK FACES 27C

HEATWAVE NEXT WEEK WITH 33 COUNTIES IN ENGLAND SET TO SIZZLE Mr Douglas said: "If you have a 'reasonable excuse' you can challenge your penalty, and reasons include the death

of a close relative, serious illness and issues with HMRC's online services. If you're struggling to pay your bill in full, then head over to the HMRC website, where you might be

able to set up a payment plan, under a 'Time to Pay' arrangement." Claire Trott, Head of Advice at St. James's Place, said: "While completing a tax return is often a

dreaded task, and one may choose to put it off, getting it sorted now could save you from significant financial penalties down the line. "Up until now, late filers have faced a one-off

fine of £100, but from today the consequences will become even greater. The £10 a day penalty will continue for 90 days, potentially adding up to £900 if the return is not submitted during

this period. "Further penalties of 5% of the tax due or £300 (whichever is greater) will apply at both the six month and 12 month mark for those who still haven't filed."

Article continues below Ms. Trott said: "The quickest and simplest way to do this is to complete HMRC's online form. While the process may seem daunting, there are plenty of tips

and guidance available on the HMRC website, and if your finances are particularly complex, speaking to a financial adviser is always a good option for those who are able. "With

today's penalties likely to cause alarm for those who are unaware, the most important thing is not to rush the return process as this could cause you to leave out vital information that

could result in paying more tax than necessary. "There are a number of details - such as gift aid payments, and necessary work expenses - that can be easy to forget about when filing a

return but can amount to significant tax relief. It's important to take time to include all relevant information to ensure you receive the full tax relief you're entitled

to."