Late filing of your 2010/2011 tax return and late payment of tax now leads to even heftier fines. We have detailed the changes below to help avoid you being caught out.
Penalties for late filing of tax return
| One day late | A penalty of £100, this will be due even if you have no tax to pay and you have already paid all the tax owed. |
| Three months late | An automatic daily penalty of £10 per day, a maximum of £900 will be fined. This is in addition to the fine above. |
| Six months late | £300 or 5% of the tax due, whichever is the higher. This is in addition to the penalties above. |
| Twelve 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 in addition to the penalties above. |
Penalties for paying tax late
| Thirty days late | An initial penalty of 5% of the tax unpaid to date. |
| Six months late | Further penalty of 5% of the tax that is still unpaid. This is in addition to the 5% above. |
| Twelve months late | Further penalty of 5% of the tax that is still unpaid. This is in addition to the two 5% penalties above. |
These penalties are in addition to the interest you will be charged on outstanding payments, which includes unpaid penalties until the payment is received.
For more information about the penalties please contact our Private Client Tax Manager Paula Jeffs on 01727 838 255.
