HMRC is reminding both individuals and businesses about new self assessment penalties for late returns and payments, which will affect returns for 2010/11 and all future tax years.
The rule for capping the £100 late filing penalty will change this year, and a summary of the new penalties for late self assessment returns are listed below:
- An initial £100 fixed penalty, which will now apply even if there is no tax to pay, or if the tax due is paid on time
- After 3 months, additional daily penalties of £10 per day, up to a maximum of £900
- After 6 months, a further penalty of 5% of the tax due or £300, whichever is greater and
- 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 late are 5% of the tax unpaid at:
- 30 days
- 6 months and
- 12 months
Interest will also be charged on top of these penalties.
For more detail on the changes click here
Remember: The tax return deadlines remain unchanged – 31 October for paper and 31 January for online returns. The deadline for paying any tax due also remains the same at 31 January.
