For the
tax year 2011/12 there is a new penalty regime for late filing of tax
returns and the late payment of tax. Under the new regime penalties for
filing a tax return six months late could exceed £1,300.
The new penalties – late returns
HM
Revenue & Customs (“HMRC”) considered that the old penalty of £100
did not act as a deterrent for late filing of tax returns. The new
penalties for late filing of tax returns are as follows:
- A £100 penalty will be imposed from the day after the deadline.
This will be imposed even where the tax is already paid or there is no
tax to pay - A daily penalty of £10 up to a maximum of £900 where the return is greater than 3 months late
- Additional penalties of the greater of 5% of the tax due or £300 where the return is over 6 months late
- Further penalties of the greater of 5% of the tax due or £300 where the return is over 12 months late
- In serious cases penalties of up to 100% of the tax due may be applied
The new penalties – late filing
Penalties for paying your tax late are as follows:
- 5% of the unpaid tax if 30 days late
- A further 5% of the unpaid tax if 6 months late
- A further 5% of tax unpaid tax if 12 months late
For further information or to discuss the issues raised, please contact Guy Abbiss, Stephen Wright or Bina Gayadien on +44 (0) 20 3051 5711
