HMRC issues tax penalty reminder

Date: 12th September 2011

Small business owners around the UK have been reminded of a new tax penalty scheme set to be operated by HM Revenue & Customs (HMRC).

The department has confirmed that from this autumn late submission of self-assessment tax returns will result in an initial penalty if £100, even in cases where there is no tax to pay.

After three months additional penalties of £10 will be incurred every day to the maximum of £900.

If a return has still not been submitted within six months of the deadline, a further penalty of five per cent or £300, whichever is the greater, will also be applied.

The same penalty will then be applied at 12 months, but HMRC has warned that at this point, the penalty could rise to as much as 100 per cent of the total amount of tax due.

HMRC commented: "The tax return deadlines remain unchanged – October 31st for paper and January 31st for online returns. The deadline for paying any tax due also remains the same at January 31st."

Posted by Thomas Fletcher