Tougher penalties for late self assessment returns
Late self assessment returns will be subject to a new penalty regime announced by HMRC.
Under the new regime, from 6th April 2011 people failing to meet the relevant deadline will incur an automatic £100 fine that will increase by £10 per day, up to £900 for the first three months. For returns that are filed in excess of three months, the greater of £300 or 5% of the tax will be added to the £900.
In addition, there will be penalties charged for paying taxes late, which will be of 5% of the tax owed, increasing by 5% every 30 days.
The new penalties will apply to paper returns submitted after the October deadline and the January deadline for online returns.
