If you haven’t yet filed 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.
In addition there will be late payment surcharges as outlined below.
Do not forget to pay your tax bill on 31 January 2012.
Late paid tax will be subject to an interest charge of 3%. For example, if you pay a tax bill of £2,000 ten days late, then you will owe interest of £2,000 x 3% x 10/365 = £1.64.
Beware of late payment surcharges if you pay late tax due from the 2010/11 tax year as surcharges apply.
These are 5% of the tax unpaid at:
• 30 days
• 6 months, and
• 12 months
Interest is charged in addition to these penalties.
For example, if you owe tax of £10,000 from 2010/11 due on 31 January 2012 which is not paid until 1 August 2012, you will owe:
Initial surcharge £10,000 x 5% = £500
Second surcharge £10,000 x 5% = £500
Late payment interest £10,000 x 3% = £300 x 182/365 = £149.58
Total owing £11,149.58
Details on how to pay tax can be found by clicking on: www.gov.uk/pay-self-assessment-tax-bill
Tax can also be paid over the phone using your debit card. Call 0845 305 1000 and give details of your card number, tax reference and the amount you wish to pay.
Further details can be found at www.gov.uk/self-assessment-tax-returns/deadlines