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New penalties for late self assessment returns
HMRC remind taxpayers who plan to make their first online tax return submission that they should register in good time before the 31 January filing deadline, because it can take up to ten days to gain an activation code.
Paper tax returns for 2010/11 had to be submitted by 31 October; all outstanding 2010/11 returns must now be sent online.
New penalties for late self assessment returns apply from this year and they are as follows:
- an initial £100 fixed penalty, which will now apply even if there is no tax to pay, or if the tax due is paid on time;
- after three months, additional daily penalties of £10 a day, up to a maximum of £900;
- after six months, a further penalty of 5% of the tax due or £300, whichever is greater; and
- after 12 months, another 5% or £300 charge, whichever is greater. In serious cases, the penalty after 12 months can be up to 100% of the tax due.
In addition, there are new penalties for paying late of 5% of the tax unpaid at 30 days, six months, and 12 months.
