HMRC introduce steep new penalties for late tax returns
This entry was posted on Friday, December 16th, 2011 at 5:29 pm.
December is the month that you need to keep your wits about you. What with Christmas, New Year’s Eve and the pressure of a significantly reduced working month, it can be hard to get everything organised.
Surely the only thing you want to do come January is finish off the mince pies, play with your Christmas presents and relax? Sounds great, but before you settle down with a turkey sandwich there’s still one very important thing that you can’t forget to do… your Self-Assessment Tax return.
The deadline for the paper returns was in October, but with more and more people now choosing to file their returns online, the deadline of January 31st is a vital date to remember, if you don’t the penalties are steep!
According to HMRC, 1.5 million people in the UK missed the January deadline in 2011, despite television and radio campaigns to remind them. To try and avoid the same again this year, HMRC have got tough, and have introduced a new raft of late fees designed to make sure that the deadline is met. The new penalties are:
- 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.
- 3 months late: £10 for each following day – up to a 90 day maximum of £900. This is on top of the fixed penalty above.
- 6 months late: £300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.
- 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 instead. These are as well as the penalties above.
If you are concerned about meeting the dates or worried about how to go about submitting your form online, don’t panic – the cps group can help! Whether you’re self-employed, a soletrader or a contractor our expert team is able to help with any of your tax documentation, including your tax return, and we’ve never missed a deadline!
Don’t kick off the new year with a nasty penalty, contact the cps group today for more information on making submitting your tax return simple.