Penalties for late returns and late payment of tax - 23 March 2010
Penalties for late returns and late payment of tax
Penalties for late returns and late payment of tax - 23 March 2010
| Income tax self assessment |
Note |
2010/11 |
2009/10 |
| Standard penalty - up to 6 months late |
1,4 |
£100 |
£100 |
| Standard penalty - up to 12 months late |
1 |
£200 |
£200 |
| Return over 12 months late |
|
100% of tax due |
100% of tax due |
| Daily penalty - at HMRC officer's discretion |
|
£60 |
£60 |
|
Corporation tax self assessment
|
| First and second late returns - up to 3 months late |
|
£100 |
£100 |
| Third consecutive late return - up to 3 months late |
|
£500 |
£500 |
| First and second late returns - 3 - 6 months late |
|
£200 |
£200 |
| Third consecutive late return - 3 - 6 months late |
|
£1,000 |
£1,000 |
| Returns more than 6 months late |
|
10% of tax outstanding |
10% of tax outstanding |
| Returns more than 12 months late |
|
20% of tax outstanding |
20% of tax outstanding |
|
PAYE
|
| Year end return (form P35) and related forms |
|
£100 per 50 employees per month (or part) |
£100 per 50 employees per month (or part) |
| Form P11D(b) where due |
|
£100 per 50 employees per month (or part) |
£100 per 50 employees per month (or part) |
| Forms P11D |
|
£300 per form |
£300 per form |
|
CIS
|
| Monthly return - CIS 300 |
|
£100 per 50 subcontractors per month |
£100 per 50 subcontractors per month |
|
VAT : default surcharge periods
|
| First return in surcharge period |
3 |
2% |
2% |
| Second return in surcharge period |
3 |
5% |
5% |
| Third return in surcharge period |
|
10% |
10% |
| Fourth and subsequent return in surcharge period |
|
15% |
15% |
Notes
- The fixed penalties for late self assessment returns cannot exceed the tax outstanding on the due date for the return. If all of the tax has been paid the fixed penalty is zero. This does not apply to partnership and trust returns and this 'cap' is due to be withdrawn shortly.
- VAT default surcharge also applies when the VAT return has been submitted but the VAT remains unpaid. The penalty is calculated at the rate shown applied to the VAT outstanding. Late repayment returns still register as a default, but no penalty is due.
- Penalties at 2% and 5% are not levied if the amount of the penalty does not exceed £400, but the default still registers and increases the potential penalty for the next default.
- Taxpayers who file late paper return, but pay all of their tax outstanding before 31 January 2011 will have their penalty "capped" at zero.
So a late paper return will not, accrue a penalty provided that the tax is paid by the due date. This does not apply to partnership returns.
Late payment penalties
Self Assessment
Penalties of 5% of the tax unpaid are charged one month and six months after the due date for tax payment (31 Jan) on 28 February & 31 July.
VAT
The default surcharge penalty system also applies to late payment of VAT liabilities, even if the return is filed on time.
PAYE, NIC and CIS tax
A new penalty regime commenced in 2010/11 under which late payment of PAYE, NIC and related liabilities during the tax year will attract a penalty. The first late payment in the tax year is not liable to penalties but subsequent late payments attract a penalty base on the total number of late payments in the tax year.
| Number of defaults |
Penalty % |
| 1 |
0 |
| 2,3,4 |
1% |
| 5,6,7 |
2% |
| 8,9,10 |
3% |
| 11 or more |
4% |
Tax is due by 19th of the following month or 22nd if paid electronically. Small employers can register for the quarterly payment scheme.
Limited company accounts – late filing penalties
Penalties for late filing are as follows:
| Length of delay, based on the filing date |
Private company |
Public company |
| Not more than one month |
£150 |
£750 |
| More than one month but not more than three months |
£375 |
£1,500 |
| More than three months but not more than six months |
£750 |
£3,000 |
| More than six months |
£1,500 |
£7,500 |
more
