New self assessment penalties for late returns come into effect this Autumn for returns relating to 2010/11 onwards. An initial late filing penalty of £100 will apply for late submission of the forms regardless of whether the tax has been paid on time or not. It will apply even if there is no tax to pay or if a repayment is due.
Penalties increase as the overdue period continues and after three months additional daily penalties of £10 are applied, up to a maximum of £900. After six months a further penalty of five per cent of the tax due of £300, whichever is greater; and after 12 months another five per cent or £300 charge, whichever is greater. Interest will also be charged on penalties.
Visit www.hmrc.gov.uk/sa/-deadlines-penalties.htm for more information.
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