Q&A: Last year’s tax return outstanding

I have only just completed my tax return for the 2010/11 tax year. As this return is late, what penalties and interest can I now expect?

Your tax return is over 11 months late so you will be charged all of the following late filing penalties:

• £100 fixed penalty
• £900 penalty - this is £10 each day from 1^st May to 29^th July, when the maximum 90 day penalty is reached
• £300 or 5% of the tax due - whichever is the higher

Furthermore, if you have any outstanding tax for 2010/11, interest will be charged from the relevant due dates, to the date you settle your account.

Late payment penalties also apply if payment is delayed by 30 days.

I would strongly recommend that you file your tax return before 31^st January, as further penalties arise when a tax return and/ or payment is over 12 months overdue.

If you would like any assistance with managing your tax affairs, your local TaxAssist Accountant would be happy to help you. Using an accountant, should ensure that your tax return is completed accurately and in a timely fashion, to avoid you wasting your hard-earned cash on penalties and interest.  Your local TaxAssist Accountant will also look for tax savings, reliefs and allowances available to you, to ensure you pay just the tax you owe; and not a penny more.

By Jo Nockels