Latest News

Resources
Newsletters Articles
Understanding Accounts & Taxation VAT
Book-Keeping - Setting Up Financial Systems
Pensions & Superannuation Seminar Notes

Tax Return & Expenses Forms
Personal Expense Claim Form
Locum Expenses Claim form
Rental Income & Expenses Form

A new and much harsher penalty regime for Self Assessment tax returns

Under the new system, there will still be an initial £100 fine for filing self assessment tax return after 31 January.

For the next three months the fines will be £10 per day, up to a maximum of £900.

For delays between three months and six months the further fine will be a flat £300 or 5% of the tax due, whichever is higher and for returns filed between six months and 12 months late there will be another flat charge of £300 or 5% of the tax due (again, whichever is higher) and in some "serious" cases the taxpayer may be fined 100% of the tax instead.

Someone who failed to submit their return for 12 months would end up being fined at least £1,600.

The penalties are on top of the interest, HMRC will charge until payment is made.

Taxpayers will only be able to appeal against these penalties, if they have reasonable excuse for not submitting their tax return on time.

We therefore advise clients to send their tax information well in advance of the deadline, in order that their tax return may be prepared, send for signature and submitted to the Inland Revenue by the due date.