'Missing tax deadline could be costly'
Monday 16th January 2012
With HMRC bringing in new penalties for late submission of self-assessment tax returns, missing the deadline could prove very expensive, according to KPMG.
"Even those who have no tax to pay will face fines of at least £100 for being just one day late - this could increase to £1000 if returns are not submitted by end of July 2012," said David Kilshaw, chair of private client advisory at KPMG in the UK.
"The 31 January deadline for submitting self-assessment tax returns is fast approaching. The paper deadline of 31 October 2011 has passed so they must be filed online to avoid the £100 late filing penalty."
He warned that the new penalties might catch people unawares and said people needed to make sure that they registered to file online in time.
"This is the first year of this new regime so I expect that this will catch a few people out," he said. "Remember it takes up to 10 days to register for self assessment online so if you have not done so already, you will need to do that as soon as possible."
Penalties for missing the tax return deadline
1 day late
A fixed penalty of £100. This applies even if you have no tax to pay or have paid the tax you owe.
3 months late
£10 for each following day - up to a 90-day maximum of £900. This is as well as the fixed penalty above.
6 months late
£300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.
12 months late
£300 or 5% of the tax due, whichever is the higher.
In serious cases you may be asked to pay up to 100% of the tax due instead.
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