New penalties were introduced on 6 April 2011 for Self-Assessment customers who fail to meet their tax return and payment deadlines.
HM Revenue & Customs (HMRC) is reminding individuals and businesses about new Self-Assessment penalties for late returns and late payments, which come into effect this autumn.
The changes will affect Self-Assessment returns for 2010/11, and all future financial years.
The new penalties for late 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; and
- 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 late are 5% of the tax unpaid at:
- 30 days;
- 6 months; and
- 12 months
i.e. resulting in a possible further 15% payable.
Interest will also be charged on top of these penalties with the current (at 1st Oct 2011) annual rate of interest being 3.0%.
The tax return deadlines remain unchanged – 31 October for paper and 31 January for online returns. The deadline for paying any tax due also remains the same at 31 January.