Late Tax Return Penalties

25th February 2014

Late Tax Return Penalties

 

Accountants and probably some tax payers tend to take a deep breath on the 31 January having reached the end of yet another year of tax returns submissions but it is worth bearing in mind the small minority of tax payers who miss the deadline and what this means to them.

HMRC widely advertise the £100 flat rate penalty that applies to the returns not submitted by 31 January but the key dates and the basis of calculation for further penalties and interest that can apply are less well publicised.

If you have not submitted your Tax Return the key dates and penalties are as follows:

  • 28 February 2014 – 5% of any outstanding tax.
  • 1 May 2014 – daily penalties of £10.
  • 31 July 2014 – a further 5% of any outstanding tax.
  • 1 August 2014 – an additional £300.
  • 1 February 2015 –an additional £300.

In addition interest continues to accrue on a daily basis on any unpaid tax.

Whichever way we look at it penalties and interest are basically tax in another form so putting off until tomorrow what could be done today is fine provided you are aware of the financial consequences of doing so….

If you wish to discuss your Tax Return and the penalties mentioned above, please contact our office on 01273 701200

Author, Matthew Benton, Senior Manager

Comments



GloriaX. (not verified)
7th Mar 2014

Taxes are part of our

Taxes are part of our obligation, but some of us are not aware about the advantages they offer. There's been a continuing tug of war over whether state taxes are better than sales taxes, with a mixed bag of things for and against both ways of getting the public to pony up. Get more information


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