CH155200 - Penalties for failure to pay on time: rules for specific taxes: Income Tax and Capital Gains Tax (IT & CGT): penalties: determinations in absence of a return, assessments, amendments and corrections

A person is liable to a penalty where they pay late an amount of income tax or capital gains tax that results from

  • HMRC issuing a determination in the absence of a return,
  • the person amending their return to correct an inaccuracy,
  • HMRC correcting obvious errors or omissions in a return,
  • HMRC amending the return during an enquiry to prevent a loss of tax,
  • HMRC amending the return on completion of an enquiry,
  • HMRC making an assessment other than in the absence of a return, or
  • HMRC making a Simple Assessment.

See below for what the penalty date is for each of these.

Determination made in the absence of a return

Where we have issued a determination in the absence of a return for a period, the penalty date is 31 days after the due date that would have applied if the income tax or capital gains tax had been shown on a timely return for that period.

Where a determination is superseded by a self assessment, the penalty date for any additional amount payable is 31 days after the due date that would have applied if the income tax and capital gains tax had been shown on a timely return for that period.

Assessments, other than in the absence of a return, and amendments (including consequential amendments in a partnership case) or corrections of a return

Where further tax is due and payable resulting from an assessment, amendment or correction of a return, the penalty date is 31 days after the due date for this further tax. The person is liable to an initial penalty of 5% of the amount unpaid at the penalty date.

Note that if a person makes an amendment or correction to a return, this may indicate that the original return was incorrect and that they may be liable to an inaccuracy penalty under Schedule 24 FA07.

See SAM61390 for further guidance about late payment penalty trigger dates.

FA09/SCH56