New interest and penalty rules for self assessment tax returns will affect returns for the tax year 2010/11 and for all future tax years. These penalties also apply to partnership and trust returns.
The deadline for submitting the 2010/11 return and paying any tax due is 31 January 2012. After this date the penalties for late self assessment returns are:
- An initial £100 fixed penalty, now applied even if there is no tax to pay, or if the tax due is paid on time.
- After 3 months, additional 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.