A tough new penalty regime introduced by HMRC means it is more important than ever to ensure you submit your tax return on time.
As we approach the January (31 2012) deadline for submitting self-assessment tax returns, it is a good time to remember the new penalty regime introduced in April 2011.
- 1 day late – A penalty of £100 will be charged. This penalty has not changed but if you were late submitting your return previously, and there was no tax due, the penalty would be cancelled. This is no longer the case. The £100 penalty is payable regardless.
- 3 months late – A penalty of £10 a day up to a maximum of £900.
- 6 months late – Further penalties will be charged, the greater of 5% of the tax due or £300.
- 12 months late – Another charge, the greater of 5% of the tax due or £300. In some more serious cases you face a higher penalty of up to 100% of the tax due.
It is important to remember that there is also interest and surcharges due on top of the tax due.
Of course, Lindsays can help with your Tax Return and ensure that it is submitted on time to avoid these costly penalties. If you would like help with your Tax Return or to discuss any other Tax related issue please get in touch with your usual Lindsays contact.