Late filing:
Many individuals who are late in filing their 2011 self-assessment return may not realise that they will suffer late filing penalties even if they owe no tax for 2010-11.
And the days of a single £100 fine are long gone. The new fines are:
- One day late an initial penalty of £100
- Three months late a daily penalty of £10 per day up to a maximum of £900
- Six months late an additional £300 or 5% of any tax outstanding, whichever is the higher amount
- One year late a further £300 or 5% of any tax outstanding, whichever is the higher amount
As you can see the minimum penalty for filing 6 months late is £1,300 even if all your tax due is paid on time or you are due a tax repayment.
Late payment:
If you are late in settling your self-assessment liabilities a penalty calculated as 5% of tax unpaid at 30 days, 6 months and 12 months will be added to your debt. Additionally interest will be due until the debt is cleared.
