Our bestof Chartered Accountants - Stewart Fletcher & Barrett provide us with timely advice about changes to the way in which HMRC will deal with late returns in 2012 ...
Previously, returns filed after the deadline would attract a £100 fine. Now, under the new framework, depending upon the length of the delay paying, the penalty you will have to pay could be:
1 day late - a fixed 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.
(Source: http://www.hmrc.gov.uk/sa/deadlines-penalties.htm)
This means that a tax return filed six months late could attract a penalty of at least £1,300!
If you are concerned about preparing your tax return on time and ensuring that you avoid such heavy new penalties then please contact us at Stewart Fletcher & Barrett Accountants today on 01455 268 695.
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