Posted by Tax Innovations on 13 Sep 2011
Reminder for New Tax Return Penalties
Her Majesty’s Revenue and Customs (HMRC) have sent out a reminder regarding the new penalty system for self-assessment returns that comes into effect for 2010/2011 and onwards.
In past years, there was an automatic £100 penalty if your Tax Return was filed after the normal filing deadline (31 January if you file online), but this was cancelled and reduced to nil if you did not owe any tax on the deadline date.
The new regime is much tougher! Under this, the late filing penalty of £100 will stand if you file your Tax Return late even if you do not owe any tax. In addition, further automatic penalties apply.
Summary of Tax Penalties
A summary of the main penalties is as follows;
- Tax Return 1 day late – A fixed penalty of £100. This applies even if you have no tax to pay or have paid the tax you owe.
- Tax Return 3 months late – £10 for each following day – up to a 90 day maximum of £900. This is as well as the fixed penalty above.
- Tax Return 6 months late – £300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.
- Tax Return 12 months late – £300 or 5% of the tax due, whichever is the higher.
In serious cases, you may be asked to pay up to 100% of the tax due as well as the penalties above. It is, therefore, vital that you file your 2010-11 Tax Return on time to ensure these penalties are avoided!
Contact Tax Innovations about New Tax Return Penalties
If you would like any advice regarding the above article or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or firstname.lastname@example.org.
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