Changes to Self Assessment tax return penalties
New penalties were introduced on 6 April 2011 for Self Assessment clients who fail to meet their tax return and payment deadlines.
If you miss the deadline, the longer you delay, the more you pay. So it's important to file your tax return and pay on time.
Penalties if you miss the return deadline
The deadlines for submitting your return remain the same, 31st January. If you are late our friends at HMRC will give you the following penalties:
Penalties for sending your tax return late
| Length of delay | Penalty you will be asked to pay |
| One day | £100 |
| After Three months | £10 each day - up to maximum of £900 |
| After Six months | Another £300 or 5% of the tax due, whichever is higher |
| After Twelve months |
Another £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.
All of the penalties shown in the table above will be charged even if you have no tax to pay or have paid the tax you owe.
Interest and Penalties for not paying your tax liability by 31st January
The deadline for paying your tax remains 31st January following the end of the tax year.
For example, for the tax year 2010-11 (ending on 5 April 2011) you must pay any tax due by 31 January 2012. You'll need to pay one or both of the following:
• Any tax you still owe for the previous tax year
• The first of two 'payments on account' (advance payments) for the current tax year. You won't always be required to pay these - it'll depend on the amount of tax due and the kind of income you receive.
If you are required to make a second payment of account you must pay it by 31st July.
If you miss the 31st January deadline for paying your tax due the following penalties will apply:
Penalties for paying late
| Length of delay |
Penalty you will be asked to pay |
| Thirty days | 5% of the tax unpaid at that date |
| Six months | A further 5% of the tax unpaid at that date |
| Twelve months | A further 5% of the tax unpaid at that date |
You will have to pay interest on all outstanding amounts, plus any unpaid penalties, until payment is received.
If anyone has any concerns or questions regarding the new penalties please do not hesitate to get in touch.
Gemma Bartlett
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
01803 500 500
This article is correct at the time of writing. This should not be construed as advice. Your specific circumstances should be taken into account prior to acting on any information contained herein.
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You need to complete and file an Employer Annual Return if you have had to maintain a form P11 (or equivalent payroll deductions record) for at least one employee during the tax year.
This applies even if you didn't have to make any deductions of PAYE (Pay As You Earn) tax or National Insurance contributions (NICs) from your employee(s) during the year.
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You must complete and file an Employer Annual Return if you have had to maintain a form P11 for at least one employee during the tax year.
Don't delay: speak to Vincent and Co for help and advice so you comply with this and avoid penalties.
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