HMRC is getting tougher with landlords who have ignored appeals to file their tax returns on time
The fine is for late filing of online tax returns; landlords who missed the paper tax return deadline of October 31 have already faced daily penalties since February 1.
The fines do not stop at 90 days, HM Revenue & Customs can charge more penalties on returns still outstanding after six or 12 months.
Tax penalties are also imposed, 5% of any tax due was charged at the end of February while the fines at six and 12 months are £300 or 5% of the tax due, whichever is most.
Penalties are issued automatically – landlords who believe they should not file a tax return can call an HMRC helpline on 0845 900 0444 to appeal the penalties.
“We want the returns and not penalties. So, if you haven’t sent us your 2010/11 return, you need to do one of two things urgently – either send it online by 30 April, or call us if you think you shouldn’t have to complete one,” said HMRC spokesman Stephen Banyard.
Meanwhile, landlords have started receiving letters giving notice of filing next year’s tax returns.
The HMRC penalty warning relates to tax returns for the tax year ending April 5, 2011, which should have been filed by January 31 at the latest.
The letters are for the tax year ending April 5, 2012, for tax returns that should be filed on line by January 31, 2013.
Despite the letters, most accountants and tax agents cannot file these returns as HMRC has not yet released the forms to software companies.