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April 2012

Penalties for late submission of 2011 tax returns

Under the new penalty regime, £10 a day penalties start from 1 May 2012 for those taxpayers who haven't sent in a 2011 Tax Return. Please see table below...

Penalties for missing the tax return deadline

Length of delayPenalty you will have to pay
1 day late A penalty of £100.
3 months late £10 for each following day - up to a 90 day maximum of £900.
6 months late £300 or 5% of the tax due, whichever is the higher.
12 months late £300 or 5% of the tax due, whichever is higher. In serious cases you may be asked to pay up to 100% of the tax due instead.

 

In addition, if the client hasn't paid the tax on time, then the following surcharges are due...

Penalties for paying late

Length of delayPenalty you will have to pay
Thirty days late 5% of the tax you owe at that date.
Six months late 5% of the tax you owe at that date. This is as well as the 5% above.
Twelve months late  5% of the tax unpaid at that date. This is as well as the two 5% penalties above. 

The penalties above do not apply to any payments on account that you pay late.

For more information about this please contact one of our tax managers, either Ian Frost on 0121 711 2468 or Sarah Grandison on 02476 518 555.