If you have already completed your 2011 tax return, then you don’t need to read this article and you can give yourself a pat on the back.
If you have still to file your tax return, then please read on. You need to act quickly to avoid having to pay the following penalties.
The filing date for the 2011 tax return is 31 January 2012. If the return is late, penalties will apply as follows:
• an initial £100 fixed penalty – even if no tax is due or all the tax is paid on time
• after 3 months, daily penalties of £10 per day, up to a maximum of £900
• after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
• after 12 months, another 5% or £300 charge, whichever is greater. In serious cases, the penalty after 12 months can be up to 100% of the tax due.
This means that if you do not send in your 2011 tax return until 30 September 2012, you will have penalties to pay of £1,300 even if no tax is payable.
New penalties also apply for paying late. These are 5% of the tax unpaid at:
• 30 days
• 6 months, and
• 12 months
Interest is charged in addition to these penalties.
Further details can be found at www.gov.uk/self-assessment-tax-returns/deadlines