You will be liable to pay at least an initial £100 penalty – even if there is less than £100 tax to pay. Do bear in mind that the longer you delay submitting your tax return, the more it will cost you.
Following that initial £100 penalty, you will be subject to:
- After three months: additional daily penalties of £10 per day – up to a maximum of £900
- After six months: a further penalty of 5% of the tax due or £300 – whichever is greater
- After 12 months: another 5% of the tax due or £300 – whichever is greater. In more serious cases, the penalty after 12 months can be up to 100% of the tax due
Each of these penalties is in addition to one another, meaning a tax return filed a year late could be subject to penalties of at least £1,600 – which could increase, depending on the level of tax due.
You may also be liable for interest and late payment penalties on top if you delay paying any tax due. Tax payments are normally due on 31st January and sometimes the following 31st July – depending on the level of tax liability.
If you’d like any assistance, please call your local TaxAssist Accountant on 0800 0523 555.