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Daily £10 penalties for self-assessment late filers start on May 1st

Daily £10 penalties for self-assessment late filers start on May 1st

HMRC has issued a reminder to everybody, including contractor accountants, who have still to file their tax return for 2010-11 that daily penalties will start accruing if it is not returned before the first of May.

Once a self-assessment returns becomes more than three months late, a daily penalty of £10 is added for every day it stays outstanding and that is in addition to the automatic £100 fine for missing the filing deadline. The £10 penalty is applied for a maximum of 90 days and could result in late filers accumulating a total of £1,000 in penalties if the Revenue has still not received their return by the end of July.

The penalties don’t stop there though. Returns that are 6 months late will incur a further penalty of 5% of the tax owing, or £300, whichever is more. Returns that are still unfiled after 12 months will be subject to that penalty for a second time.

It’s not enough just to file your return on time; you must also settle up your outstanding tax liabilities. If a payment is 30 days late, a penalty of 5% of the tax due will be levied, followed by further penalties if the account has not been settled after 6 months and 12 months.

Stephen Banyard from HMRC explained that the department wanted returns, not penalties so anybody who has not yet filed their return should it before the 30th April or contact the Revenue if they think filing does not apply to them.

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Image: 10 British Pound note down Drain by Images_of_Money

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