Taxpayers who have not yet filed their Self Assessment returns online face a daily penalty of £10 up to a maximum of £900 i.e. for three months from 1 May 2014. If the return still remains outstanding further higher penalties will be charged from six months and twelve months late.

These penalties are on top of the £100 automatic late penalty which has already been sent to taxpayers who missed the 31 January 2014 deadline.

The penalty regime for late filing of Self Assessment returns has the following main elements:

• From 1 day late: An automatic £100 late penalty for late submission of a tax return even if taxpayers had no tax to pay or had 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.

HMRC has already begun issuing daily penalties for paper returns which were submitted late. The paper returns were due on 31 October 2013 and the daily penalty regime began on 1 February 2014.