Taxman gets tough on late submissions – even when there’s no tax to pay

PD-web-news-tax-penalties 300HMRC has written to 850,000 taxpayers who have not yet filed their 2011/12 Self Assessment returns to advise them that they are liable to an automatic £100 penalty for late submission of their tax returns.

The penalty applies even if no tax was due or the tax due was paid on time. The letter also reminds taxpayers to submit any outstanding tax return and pay any tax due as soon as possible. Taxpayers who were meant to file online by January 31, 2013 face a minimum daily penalty of £10 per day, totalling up to £900 for the three months beginning May 1, 2013. The next set of penalties begin on August 1 and taxpayers will be charged the greater of £300 or 5% of the tax due.

If the return still remains outstanding, further higher penalties will be charged when the return is twelve months late. These additional penalties are based on the greater of 5% of tax due or £300. In serious cases this penalty may be increased up to 100% of tax due.

A spokesman for HMRC said: “Anyone who hasn't yet sent their 2011/12 tax return to HMRC will have already incurred a £100 late filing penalty. To avoid any further penalties, they should send their return as soon as possible, as well as paying any outstanding tax due for the 2011/12 tax year.”

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