HMRC £10 a day penalties to be charged to thousands of people

May marks the start of new penalties for people who are yet to pay their self assessment tax returns. It's officially three months since the deadline, so if you haven't settled with HMRC yet, new penalties will start to apply, including a daily charge of £10 from now on until it's paid.

Alastair Douglas, CEO of , explained: "Although the deadline was back in January, it's likely that hundreds of thousands of people still haven't filed their tax returns. And 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 staggering 8.5% late payment interest rate on outstanding balances."

The next date to remember is the beginning of September. This marks six months after the original payment deadline and the taxman will add an additional 5% penalty on the tax due or £300 to your bill, whichever amount is higher.

Next January, 12 months after the deadline, this penalty will be repeated. The deadline to pay penalties is just 30 days.

Alastair highlighted that if you can't pay your tax due to a specific reason, you may be able to get the penalties waived. HMRC offers a list of "" that can be used to challenge incurred penalties, including:

• The death of your partner or a close relative shortly before the tax deadline
• An unexpected stay in the hospital
• Serious or life-threatening illness
• Computer or software issues preventing completion of returns or payments
• Issues with the online HMRC system
• Unpredictable postal delays affecting timely receipt of payment
• Lack of awareness or misunderstanding about tax obligations
• Dependence on a third party who failed to file on time

Alastair noted: "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."

Normally, 'Time to Pay' arrangements for Self Assessment must be requested within 60 days post the payment due date. You also need to owe less than £30,000 and have completed filing your most recent tax return.

For those grappling with tax debts in England or Wales, free debt advice is available from In Scotland, consult for complimentary guidance.