Specialist Tax News

Penalties for Late Filing of Your Income Tax Returns

New late filing and late payment penalties will apply from 6 April 2011 (in relation to tax years ending after 5 April 2010) for personal, trust and partnership returns.

The existing rule that the late filing penalty is the lower of £100 and the balance due will be replaced.  That is hardly a surprise, but the good news is that the level of the basic £100 penalty remains.

The penalties for late filing will include:

  • £100 penalty immediately after the due date for filing (whether or not the tax has been paid)
  • Daily penalties of £10 per day for returns that are more than 3 months late, running for a maximum of 90 days
  • Penalties of 5% of tax due for the return period (or £300 if greater) for prolonged failures, which arise after 6 months and again after 12 months
  • Higher penalty of 70% of tax due where a person fails to file for over 12 months and has deliberately withheld information necessary for HMRC to assess the tax; this is 100% if deliberate with concealment)

Rest assured, we will do all we can to file your tax returns on time, but the consequences of that not happening are about to get worse.

Leave a Reply