Accounting Blog

New Penalties for Late Self Assessment Tax Returns

New Penalties for Late Self Assessment Tax Returns

 Tough new rules – For several years HM Revenue & Customs have been debating tightening the rules on late Self-Assessment returns, everyone knew that there were changes coming from this April, however, I think it is fair to say that the harshness of the new penalty system has come as a surprise to many.

From 2010/11 penalties will be payable where you submit your tax return on paper after 31st October 2011 or online after 31st January 2012. If you’re late by up to three months the penalty is a flat £100. For each subsequent day you’ll be charged £10 for the next 90 days, i.e. £900. And if you still haven’t sent in your return by 31st July 2012 you’ll have to pay another £300 or 5% of any tax you owe for 2010/11, whichever is the greater. This equates to a minimum fine of £1,300 which is 550% more than the £200 penalty payable under the old rules.

Unlike earlier years you’ll be charged a penalty even where you’ve paid all the tax due on time, i.e. by 31st January following the end of the tax year in question.

With the first tax return deadline a little over six months away if you do not have professional representation our first recommendation is that you register for online filing now. This will extend the deadline for your 2010/11 return form until 31st January 2012.

Discussion

No comments for “New Penalties for Late Self Assessment Tax Returns”

Post a comment