£1,300 Penalty for Filing your Self-Assessment Tax Return Late?

“From April 2011 penalties are changing. If you send us your tax return six months late next year, you will be charged penalties of £1,300, even if you have no tax to pay or you have already paid all the tax you owe”.  That is what HM Revenue & Customs state on recently issued "Self-Assessment - Late tax return Penalty Notices" for Tax Returns for the year ended 5 April 2010.

Can that be correct?  Well it is unfortunately, and here is why:

  1. Failure to submit your 2011 tax return by the filing date of 30 October 2011 for paper returns or 31 January 2012 for online returns will render a fixed penalty of £100.
  2. In addition, where the failure to submit continues 3 months after the filing date then there is a daily penalty of £10 for a period up to 90 days beginning with the date specified in the fixed penalty notice, i.e. a maximum of £900.  
  3. Plus, if the failure to submit continues after 6 months after the filing date the penalty is the greater of £300 or 5% of the liability to tax shown on the return.

The above penalties cannot be mitigated if you have no tax to pay or you have already paid the tax you owe as was the case previously.  If you have a “reasonable excuse” penalties may be cancelled and the following link to HMRC’s website gives more information:


It therefore pays to get your tax return in on time!

If you need our assistance to get your tax return in on time, please get in touch, and remember an  initial consultation is FREE! & there is no VAT on our fees!

The above is for general guidance only.  Buick & Co Chartered Tax Advisers take no responsibility whatsoever for this blog, its reliability or any actions you take having read it.  If any tax planning is to be undertaken specific advice should be sought beforehand from a professional tax advisor.

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