Just because you have missed the deadline for self-assessment doesn’t mean you should bury your head in the sand. The longer you delay in sending in the return, the more you'll have to pay. So it's important to send your tax return online to HMRC as soon as you can. The table below shows the penalties you'll have to pay if your tax return is late. If a Partnership tax return is late, each partner will have to pay the penalties shown below.
Penalties for missing the tax return deadline
Length of delay
Penalty you will have to pay
1 day late
A penalty of £100. This applies even if you have no tax to pay or have paid the tax you owe.
3 months late
£10 for each following day - up to a 90 day maximum of £900. This is as well as the fixed penalty above.
6 months late
£300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.
12 months late £300 or 5% of the tax due, whichever is the higher.
In serious cases you may be asked to pay up to 100% of the tax due instead.
These are as well as the penalties above.
Example
Mr B’s tax return is due on 31 January 2013 but HMRC doesn't receive it until 5 August 2013.
It is over six months late so she will have to pay all of the following:
£100 fixed penalty
£900 penalty - this is £10 each day from 1 May to 29 July, when the maximum 90 day penalty is reached.
£300 or 5 per cent of the tax due - whichever is the higher
You may think you have a reasonable excuse for sending your tax return late. You can find out more about reasonable excuses in the 'How to appeal' article (see link below). You don’t need to wait until you get a penalty, you should let HMRC know as soon as you can.
For help in getting your tax return in – contact one of our highly recommended Accountants on thebestof.
SDG ACCOUNTANTS - 01229 838 567
MELVILLE AND CO - 01229 434000
LAMONT PRIDMORE - 01229 841344
