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<p>The value of interest raised on late tax return payments and late payment of penalties,
and the number and value of penalties charged to self-assessment taxpayers for late
payments of tax for each of the previous three tax returns, are provided in the following
tables. It has not been possible to separate interest for late tax payments from interest
for late payment of penalties.</p><p> </p><p>These figures are correct as at 28 December
2020 but are not final. The 2018-19 figures are particularly subject to change because
they do not include the 12-month late payment penalties due to timing and large value
penalties which can be raised based on information held at the time, but which are
subsequently cancelled or reduced once the correct information is provided. For this
reason it is not possible to make meaningful comparisons between figures from different
years.</p><p> </p><p>Late payment penalties can only be issued following receipt of
a Self Assessment tax return, or where HMRC make a determination of tax liability
for the financial year where no return has been delivered. As HMRC receive further
late returns or amended returns from taxpayers, additional late payment interest and
penalties may be issued or cancelled for earlier years.</p><p><strong> </strong></p><table><tbody><tr><td
colspan="2"><p><strong><em>1. The value of interest charged on late tax payments</em></strong></p></td><td><p>
</p></td></tr><tr><td><p><strong>Tax Year to which Interest Relates</strong></p></td><td
colspan="2"><p><strong> Value of Late Payment Interest (£)</strong></p></td></tr><tr><td><p>2016-17</p></td><td
colspan="2"><p>£73,757,000</p></td></tr><tr><td><p>2017-18</p></td><td colspan="2"><p>£64,990,000</p></td></tr><tr><td><p>2018-19</p></td><td
colspan="2"><p>£43,528,000</p></td></tr></tbody></table><p><strong> </strong></p><table><tbody><tr><td><p><strong><em>1a.
The number of customers with interest charged on late tax payments</em></strong> <table><tbody><tr><td><p><strong>Tax
Year to which Interest Relates</strong></p></td><td><p><strong>Number of Customers</strong></p></td></tr><tr><td><p>2016-17</p></td><td><p>1,195,800</p></td></tr><tr><td><p>2017-18</p></td><td><p>1,191,700</p></td></tr><tr><td><p>2018-19</p></td><td><p>922,700</p></td></tr></tbody></table></p></td></tr></tbody></table><p><strong>
</strong></p><table><tbody><tr><td colspan="3"><p><strong><em>2. The value of penalties
raised for late tax payments </em></strong></p></td></tr><tr><td rowspan="2"><p><strong>Tax
Year to which Penalties Relate</strong></p></td><td colspan="3"><p><strong> Value
of Late Payment Penalties (£)</strong></p></td></tr><tr><td><p><strong>Raised</strong></p></td><td><p><strong>Cancelled
or reduced to nil</strong></p></td><td><p><strong>Net remaining</strong></p></td></tr><tr><td><p>2016-17</p></td><td><p>£161,219,000</p></td><td><p>£46,701,000</p></td><td><p>£114,518,000</p></td></tr><tr><td><p>2017-18</p></td><td><p>£146,004,000</p></td><td><p>£34,376,000</p></td><td><p>£111,628,000</p></td></tr><tr><td><p>2018-19</p></td><td><p>£311,867,000</p></td><td><p>£196,420,000</p></td><td><p>£115,447,000</p></td></tr></tbody></table><p><strong>
</strong></p><table><tbody><tr><td colspan="4"><p><strong><em>2a. The number of customers
with penalties raised for late tax payments </em></strong></p></td></tr><tr><td rowspan="2"><p><strong>Tax
Year to which Penalties Relate</strong></p></td><td colspan="3"><p><strong>Number
of Customers</strong></p></td></tr><tr><td><p><strong>Raised</strong></p></td><td><p><strong>Cancelled
or reduced to nil</strong></p></td><td><p><strong>Net remaining</strong></p></td></tr><tr><td><p>2016-17</p></td><td><p>363,100</p></td><td><p>62,100</p></td><td><p>301,000</p></td></tr><tr><td><p>2017-18</p></td><td><p>336,800</p></td><td><p>49,300</p></td><td><p>287,500</p></td></tr><tr><td><p>2018-19</p></td><td><p>348,500</p></td><td><p>31,500</p></td><td><p>317,000</p></td></tr></tbody></table><p><strong>
</strong></p><table><tbody><tr><td colspan="2"><p><strong><em>3. The value of interest
charged and penalties raised for late tax payments </em></strong></p></td></tr><tr><td><p><strong>Tax
Year to which Interest/Penalties Relate</strong></p></td><td><p><strong> Value of
Late Payment Interest and Penalties (£)</strong></p></td></tr><tr><td><p>2016-17</p></td><td><p>£188,275,000</p></td></tr><tr><td><p>2017-18</p></td><td><p>£176,619,000</p></td></tr><tr><td><p>2018-19</p></td><td><p>£158,975,000</p></td></tr></tbody></table><p><strong>
</strong></p><table><tbody><tr><td colspan="2"><p><strong><em>3a. The number of customers
with interest and/or penalty charges raised for late tax payments </em></strong></p></td></tr><tr><td><p><strong>Tax
Year to which Interest/Penalties Relate</strong></p></td><td><p><strong>Number of
Customers</strong></p></td></tr><tr><td><p>2016-17</p></td><td><p>1,210,300</p></td></tr><tr><td><p>2017-18</p></td><td><p>1,227,300</p></td></tr><tr><td><p>2018-19</p></td><td><p>1,034,400</p></td></tr></tbody></table><p><strong>
</strong></p><p><strong>Notes on the tables:</strong></p><p><strong>All counts have
been rounded to nearest 100; all values have been rounded to nearest 1000. As such,
totals may not always sum due to rounding.</strong></p><p><strong> </strong></p><p><strong>Interest
is chargeable on late payments on account and late balancing charge payments. Penalties
are chargeable on late balancing charge payments only. As such a taxpayer may be liable
to late payment interest charges or late payment penalties, or both.</strong></p><p><strong>
</strong></p><p><strong>These figures have been produced using an extract of the data
provided for analytical purposes, and there may be small differences between this
and the live Self-Assessment system.</strong></p><p><strong> </strong></p><p><strong>Penalties
are not used as a means of generating revenue. HMRC want taxpayers to comply with
their obligations. </strong></p><p><strong> </strong></p><p><strong>HMRC charge penalties
to encourage taxpayers to meet their tax obligations and to act as a sanction for
those who do not, so the majority who do pay correctly and on time are not disadvantaged.
</strong></p><p><strong> </strong></p><p><strong>HMRC recognise that because of the
exceptional circumstances presented by COVID-19 some taxpayers will not be able to
meet their tax obligations on time, or appeal or review HMRC decisions within the
usual time limit; HMRC’s approach has been to collect the tax and penalties due in
a way that recognises the very real needs and challenges that businesses and individuals
are facing, supporting those in difficulty, including considering coronavirus as a
reasonable excuse for missing return deadlines.</strong></p>
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