New HMRC penalties for late tax returns and late payments
A new penalty structure for the 2010/11 tax year can mean the later you file your tax return the bigger the fine.
Image: David Cheskin - PA Archive
Over 10 million Self Assessment returns or notices to file a tax return have been sent out by HMRC for the 2010/11 tax year.
It is therefore important to know how the new penalty structure works for those who file their tax returns late.
The new penalties for sending in your tax return late are:
- An initial £100 fixed penalty, even if you have paid your tax on time or have no tax to pay.
- After three months, additional daily penalties of £10 per day, up to a maximum of £900.
- After six months, a further penalty of 5% of the tax due or £300, whichever is greater.
- After 12 months, another 5% or £300 charge, whichever is greater. In serious cases, the penalty after 12 months can be up to 100% of the tax due.
New penalties for paying your tax late are:
- 5% of the tax unpaid at 30 days.
- A further 5% of the unpaid tax at six months.
- An additional 5% at 12 months.
The current tax return deadlines remain unchanged on 31 October for all paper returns and 31 January for online returns. The deadline for paying any tax due also remains the same on 31st January.
To find out more about self-assessment visit our tax clinic.
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