IEIM405114 | Penalties for Late Returns

Penalties for Late Returns

Reporting Financial Institutions have to report information about Reportable Account Holders to HMRC for each Reportable Period (i.e. a calendar year). The information must be reported to HMRC by 31 May following the end of the Reportable Period.

If a Reporting Financial Institution fails to provide a report to HMRC by 31 May following the end of the Reportable Period, an initial penalty of up to £5,000 will apply and HMRC will issue a penalty notice.

If the failure continues after notice of the penalty has been issued, daily penalties of up to £600 per day may apply. Daily penalties will continue to be charged until the reporting requirements have been met.

See IEIM405131 for details of how the amount of the penalty will be determined.