Kirkpatrick & Hopes - Succession Planning Accountants

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Email us: mail@kirkpatrickandhopes.com

Warning! HMRC gives out more penalties than Premiership referees!

If you foul up your tax affairs by not filing documents on time the following penalties apply:

 

For individual self-assessment returns:

• There is a £100 late-filing penalty charged automatically when the deadline is missed

• Followed by a possible £10 per day penalty charged for a maximum of 90 days when a return is three months late

• With Extra tax-geared penalties when a return is 6 months late and then 12 months late

For corporation tax returns:

• There is an initial penalty of £100 for missing the deadline

• A further £200 if a return is three months late

• The penalties increase to £500 and £1,000 if this is the third and fourth consecutive failure to file on time

• Followed by extra tax-geared penalties if a return is 6 months late and then 12 months late

For VAT Surcharges:

You may enter a 12-month ‘surcharge period’ if you default. If you default again during this time then the surcharge period is extended for a further 12 months

Turnover Greater than £150,000

• There is a surcharge penalty of 2% for a 2nd default

• This rises to 5% on the 3rd Default

• This rises to 10% on the 4th Default

• This rises to 15% on the 5th Default

Turnover Less than £150,000

• There is a surcharge penalty of 2% for a 3rd default

• This rises to 5% on the 4th Default

• This rises to 10% on the 5th Default

• This rises to 15% on the 6th Default

HMRC record a ‘default’ if:

• They don’t receive your VAT return by the deadline

• Full payment for the VAT due on your return hasn’t reached their account by the deadline

If you have any concerns about missing a deadline please contact us straightaway to see if we can help you with your issue, bearing in mind that

  • HMRC can charge you a penalty of up to 100% of any tax under-stated or over-claimed if you send a return that contains a careless or deliberate inaccuracy.

 

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