|
Four reasons for filing your tax return on
time
Late
filing of your self assessment tax return for 2010-11 will be
subject to a new penalty regime. The old £100 penalty has not proved
to be the deterrent it was intended to be – too many tax payers are
still filing late returns.
From
October 2011, the last date for filing a paper return for 2010-11,
four penalties now apply.
- From day
one: you will be charged a £100 penalty even if you have no tax to
pay or you have paid any tax due.
- From 3
months late: you will be charged an automatic daily penalty of £10
per day up to a £900 maximum.
- From 6
months late: you will be charged additional penalties which are
the greater of 5% of tax due or £300.
- Over 12
months late: again additional penalties based on greater of 5% of
tax due or £300. In serious cases this penalty may be increased up
to 100% of tax due.
Don’t
forget these penalties will be applied after 31 January 2012. HMRC
will assume that you are going to file online if you miss the paper
filing deadline of 31 October 2011. Under no circumstances should
you post a paper return after 31 October 2011. This will trigger the
new penalties.
Seek
advice and file your return online before 31 January 2012.
Three reasons for paying your tax on
time
Penalties
for paying tax late are:
- 30 days
late: initial penalty of 5% of tax outstanding.
- 6 months
late: further penalty of 5% of tax still
outstanding.
- 12 months
late: further penalty of 5% of tax
outstanding.
And
on top of all this:
Interest
will be added to any tax paid late including interest on unpaid
penalties.
If
you feel that you had a reasonable excuse for not filing on time it
is possible to appeal.
Click here for a call back from our office regarding
this article.  Back to
top  | 
