We would remind individuals and businesses about new Self-Assessment penalties for late returns and late payments which came into effect this autumn.The changes affect Self -Assessment returns for 2010/11, and all future financial years.
The new penalties for late filing of Self- Assessment returns are:
-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 3 months, additional daily penalties of £10 per day, up to a maximum of £900
-after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
-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.
New penalties for paying tax late are 5% of the tax unpaid at:
-30 days;
-6 months; and
-12 months.
Interest will also be charged on top of these penalties.
The deadline for paying any tax due also remains the same at 31 January.
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