Q. Now that the self-assessment filing date of 31 January has passed once again, I would like to be able to understand and explain to clients the penalty regime that will apply if their returns have not been filed on time. 

A. Based on recent years HMRC will potentially issue at least one million late filing penalties.  It is important to be ahead of the game in terms advising clients who have failed to meet the filing obligation and to be able to address disputes with HMRC. 

Finance Act 2009, Schedule 55 and Schedule 56 reformed the penalty regime for self- assessment.  There are two types of penalties that need to be considered: