Tougher tax regime will leave late payers with fines of up to £1,600
Sunday 15 January 2012
With a little over two weeks to go before the self-assessment tax return deadline, taxpayers are being warned that they need to get their skates on or fall foul of a newly strengthened penalty regime.
As well as the standard £100 fine for filing a tax return after the 31 January deadline, people who leave it a further three months will have to pay £10 a day in fines up to a maximum of £900. A further £300 can be levied after six months and another £300 after 12 months, adding up to a potential £1,600 in fines.
"The changes made to late filing and payment penalties indicate that HMRC is increasingly taking taxpayers' behaviour into account when calculating penalties. For example, penalties for failing to submit a return on time now apply regardless of whether the tax has been paid, unlike in previous years when it was possible to avoid a penalty by paying tax due as in prior years," said Fiona Fernie, tax investigations partner at BDO Accountants.
Any unpaid tax has to be paid by 31 January; if it's not, then interest is charged. Generally, as a rule of thumb, HM Revenue & Customs will agree to take payment for tax owed from adjusting personal PAYE codes. Up to £3,000 can be paid in this way. If your tax bill is over £3,000, then HMRC will usually ask for payment on account for the following tax year. The first payment on account is also due by 31 January, with a further request made for 31 July.
- 1 Pope Francis: Being an atheist is alright as long as you do good
- 2 Man and woman arrested on suspicion of conspiracy to murder victim of Woolwich machete attack, named as Drummer Lee Rigby
- 3 'Sickening, deluded and unforgivable': Horrific attack brings terror to London’s streets
- 4 Archaeologists uncover nearly 5,000 cave paintings in Burgos, Mexico
- 5 Woolwich attack: The EDL will seek to exploit this evil crime for their own evil ends
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Nook is donating eReaders to volunteers at high-need schools and participating in exclusive events throughout the campaign.
Get the latest on The Evening Standard's campaign to get London's children reading.
Win anything from gadgets to five-star holidays on our competitions and offers page.
Day In a Page
A modern home of almost 1,000sq ft is close to Stoke Newington's high street. £499,950
A five-bedroom bungalow in Hoveton with riverside garden and mooring dock, £550,000
A refurbished one-bedroom flat with south-facing reception and high ceilings. £579,950
A four-bedroom Grade II-listed house in Nazeing with large gardens. £550,000
A modern four-bedroom house in a converted stable within walking distance to Peckham Rye. £695,000
Three-bedroom house in a quiet residential area within close distance to Battersea Park. £450,000
A three-bedroom cottage within commuting distance of London, Norwich and Cambridge. £250,000
A two-bedroom cottage with a sun room and gardens in South Chard. £350,000.
A three-bedroom semi-detached house with original features including fireplaces and wooden flooring. £399,950
A modern two-bedroom flat split across two floors and close to several public transport links. £595,000
A one-bedroom flat with an open-plan reception/kitchen and private balcony. £315,000.
A bright two-bedroom garden flat between South Acton and Chiswick Park. £499,950.
A listed four-bedroom farmhouse with stables, set in four acres. £500,000.
A three-storey family home with four bedrooms and an extended kitchen/diner. £995,000.
A three-bedroom Hamstone cottage in the rolling Somerset countryside. £430,000.
A luxury one-bedroom apartment on the first floor of a converted Victorian house. £425,000.