Deadlines and Penalties

Late filing

There are important changes to the penalties when filing your tax return late from now on!

You will have to pay a penalty in both of the following cases;

• you have no liability
• you have already paid in full by 31 January 2012.

Firstly you pay £100 if the Return is not filed on paper hard copy by 31 October 2011 or electronically by 31 January 2012.

If it’s over 3 months late there’s a daily penalty of £10 charged on you for the next 3 months! 

Should the return be over 6 months late then you pay a penalty based on the tax due being the HIGHER of £300 or 5% of the tax due.

If it’s over a year late your penalty is the HIGHER of £300 or depending on your ‘behaviour’;

• 5% of the tax due; or
• 70% of the tax due if you have deliberately withheld details; or
• 100% of the tax due if you have hidden the details.

Late payment of the tax due

Firstly, 5% of the tax due if that’s not paid by 1 March. 

Another 5% if the tax is still not paid by 1 August.

A third penalty is due if the tax is not paid by the following 31 January.

These penalties can be avoided if you are paying your tax through the ‘Time to Pay’ arrangement organised with the Revenue.

So, if you tend to send in your information late beware from now on!