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HMRC internal manual

Self Assessment Manual

Interest, penalties and surcharge: penalties: tax-geared penalties

This guidance refers to tax returns received for 2009-10 and earlier. For further information regarding the new rules for the tax years 2010-11 and later, see SAM61200 onwards.

This penalty applies to individuals and trustees who fail to file their return on time. It does not apply to a partnership return.

The Work Management system alerts the office responsible for Technical work of cases for consideration of tax - geared penalties.

That office may impose these penalties where the return is more than 12 months late, normally by inclusion in a contract settlement. Central Policy (Tax Administration Advice) will approve any formal determination of the penalty.

The penalty is based on the amount of the tax unpaid as at the original filing date and will only be imposed once the return has been received.

The amount of the penalty is based on 100 per cent of the amount of the tax unpaid at the filing date - but is subject to abatement.

More information on tax - geared penalties is available in the Enquiry Manual, including details of the penalties for incorrect returns submitted fraudulently or negligently (see EM4580).