Tax Return Late Filing Fines to Increase

HMRC are threatening large fines for those that file their tax returns late. The current deadline for filing a personal tax return is 31st October for a paper return and 31st January for on-line filing, returns submitting after these dates will be liable for a fine.

The late filing fines start at £100 and if the the return is still outstanding after 3 months this will increase by £10 per day to a maximum of £900. For those returns over 6 months a further £300 fine or 5% of any any tax due whichever is the higher will be imposed. If you are over 12 months overdue you will incur a further £300 fine or 5% of the tax due again whichever is the higher. For serious cases in late filing there is the potential for HMRC to impose a fine of 100% of the tax instead!

If you are over 12 months late in filing your tax return you could end up with a fine of £1,600.

Fines will also now be imposed even if you have no tax to pay, before if you had no tax to pay and your return was late you could have the fine cancelled but after 31st January 2012 this will no longer be the case.

Tax payers are in real danger of incurring significant fines due to the new penalty regime if tax returns are not submitted on time. Don’t delay and get your tax return completed on time, what’s the point in paying the tax-man any more than what you have to!

About the Author

Mark Higham

Is the Managing Partner at Numero Accountancy LLP and an ACCA qualified accountant. Having spent time working in large Plc's and Private Limited Companies in Senior Finance roles Mark start his own practice in 2005. In this time Mark has been a finalist in Doncaster Chambers Entrepreneur Year and Numero have been finalists in the Rotherham Chamber New Business Start-Up and Most Innovative Use of Technology Awards.

Posted on 22nd September, 2011