HM Revenue and Customs (HMRC) has issued a reminder on new tax return penalties that come into effect this Autumn.
The changes will affect self assesment returns for 2010/11, and all future financial years.
The new penalties for late self assessment returns are:
•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 per cent of the tax due or £300, whichever is greater; and
•After 12 months, another 5 per cent or £300 charge, whichever is greater. In serious cases, the penalty after 12 months can be up to 100 per cent of the tax due.
New penalties for paying late are 5 per cent of the tax unpaid at:
•6 months; and
Interest will also be charged on top of these penalties.
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.
More guidance on tax return deadlines and penalties can be found here http://ow.ly/6tR2o