Tax Returns are just one of those things you have to deal with – a bit like dentists – but unlike your dentist, there are serious penalties for missing your appointment and this year they are more draconian than ever. Thank you to Peter Hayes from Newland Hayes Accountants for this timely reminder.
Penalties for missing your Tax Return deadline
Note: These penalties relate to filing your Tax Return, NOT paying any tax you may owe. All penalties are CUMULATIVE!
1 Day Late
A fixed penalty of £100. This applies even if you have no tax to pay!
3 Months Late
£10 per day for each day late after the first day up to a 90 day maximum – £900
12 Months Late
£300 or 5% of the tax due whichever is higher. In serious cases you may have to pay up to 100% of the tax due. All of the above penalties are cumulative.
Here is an example:
Mrs A’s tax return is due on 31st January 2012 but HMRC don’t receive it until 5th August 2012 Mrs A’s return is over 6 months late so she will have to pay the following penalties: £100 fixed penalty PLUS £900 penalty – i.e. £10 per day for the 90 days from 1st May 2012 to 29th July 2012 PLUS £300 or 5% of the tax due whichever is higher A total of AT LEAST £1300 – and this is even if she had paid her tax on time! You have been warned! If you need any help with your Tax Return do get in touch with Peter who will be able to help.