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Reminder on new tax return late filing penalties
We are reminding individuals and partnerships about the new Self Assessment penalties for late returns and late payments, which come into effect this autumn.
The changes will apply to Self Assessment returns for 2010/11 which must be submitted by 31 January 2012.
There is a potential penalty of £1,600 if you file your tax return late EVEN IF THERE IS NO TAX LIABILITY.
Penalties: Late Submission of Tax Returns
For the 2010/11 year, the deadline for submission of paper Tax Returns is 31/10/11 and for online Tax Returns is 31/01/2012.
Regardless of the tax due, penalties will apply as follows:
|
Up to 3 months late: |
Initial £100 penalty |
£100 |
|
Over 3 months late: |
a £10 per day penalty, a maximum of £900 |
£900 |
|
Over 6 months late: |
Penalty of 5% of tax due* or £300 (whichever is the highest). |
£300 |
|
Over 12 months late: |
Penalty of 5% of the tax due or £300. |
£300 |
|
Potential Total |
£1,600 |
|
(*For 5% of the tax due to apply, the liability would need to be £6,000 or more.)
Penalties: Outstanding 2011/12 Tax liabilities
If you do not pay your Tax due by 31 January 2012, penalties will apply here too:
- Over 30 days late: 5%
- Over 6 months late: 5%
- Over 12 months late: 5%
The 5% is calculated on tax outstanding at that point in time, and is in addition to earlier 5% penalties.
Interest will accrue on both unpaid tax and unpaid penalties.
The longer it takes to pay, the more you will have to pay.
Please get in touch with your client contact at Rowley's on 0116 2827000, if you have any questions or concerns.