Beware of new HRMC tax penalties

  Beware of new HRMC tax penalties

Tax Partner

You should now have received notice from HMRC of their new penalties for late filing and late payment of tax.

Be warned though explains Jeannette McLellan tax partner, the penalties have risen significantly so my advice is to ensure you get your information to your accountants early so you don’t incur any fines at all.

The new penalty regime for late filing and late payment of self-assessment income tax started in April 2011 and will apply to the tax year 2010/11.

PREVIOUS FINES

NEW PENALTIES FOR APRIL 2010/11 TAX YEAR

 

Overdue by

Penalty

Lower of £100 or tax due One day late Automatic £100 fine, even when no tax outstanding
  3 months Up to £10 per day (maximum 90 days)
Lower of £200 and tax due 6 months late 5 % of the outstanding tax, or £300 if greater, in addition to previous penalties
£200 + up to 100% of the tax outstanding 12 months late Increases by 5% to 15% of tax due, of £300 if greater
  More than 12 months late Up to 70% of tax outstanding, or £300 if greater

 The new penalties for late payment of tax are:

PREVIOUS FINES

NEW PENALTIES FOR APRIL 2010/11 TAX YEAR

 

Overdue by

Penalty

More than 28 days late: 5% 30 days late 5% of tax outstanding
More than 6 months late: 10% 6 months late Further 5% added, so now 10% of tax outstanding
  12 months late Increases by another 5% to 15% of tax outstanding

These penalties are on top of any interest that HMRC will charge on all outstanding amounts, including unpaid penalties, until the payment is received. So you could be looking at a substantial sum.

If you are concerned with the new penalty regime or want more information and advice please do not hesitate to speak to us on 01792 410 100, or email us at tax@bevanbuckland.co.uk

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