HMRC to issue new penalties for late tax returns

From 17 February HM Revenue & Customs (HMRC) will start issuing penalties to taxpayers who fail to file their 2010/11 self assessment tax returns on time. These penalties could reach up to £1,600, even in cases where no tax is due. The deadline was extended to 2 February this year, after HMRC staff went on strike on deadline day.

Last year, 86% of the 10.3m self assessment taxpayers filed by the 31 January deadline. However, of the 14% that were late in filing, 11% (some 1.1m people) still hadn't submitted their return six months later.

The new penalties start at £100 for missing the deadline. Where the tax return is three months late daily penalties of £10 will be issued for a maximum of 90 days. If the tax return is more than 6 months late a further penalty will be charged of 5% of the tax due, or £300 if higher. This penalty will be also be applied where the tax return is more than 12 months late.

For further information please visit http://www.wardwilliams.co.uk