With HMRC bringing in new penalties for late submission of self-assessment tax returns, missing the deadline could prove very expensive, warns KPMG in the UK.
“Even those who have no tax to pay will face fines of at least £100 for being just one day late - this could increase to £1,000 if returns are not submitted by end of July 2012”, warns David Kilshaw, chair of private client advisory at KPMG in the UK.
“The 31 January deadline for submitting self assessment tax returns is fast approaching. The paper deadline of 31 October 2011 has past so they must be filed online to avoid the £100 late filing penalty,” said David Kilshaw
David Kilshaw warned that the new penalties might catch people unawares and warned that people need to make sure that they register to file online in time:
“This is the first year of this new regime so I expect that this will catch a few people out. Remember it takes up to 10 days to register for self assessment online so if you have not done so already, you will need to do that as soon as possible.”
Information on late filing penalties
Details of the penalties are below. Further details are available on the HMRC website on the link:
http://www.hmrc.gov.uk/sa/deadlines-penalties.htm
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Penalties for missing the tax return deadline |
|
Length of delay |
Penalty you will have to pay |
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1 day late |
A fixed penalty of £100. This applies even if you have no tax to pay or have paid the tax you owe. |
|
3 months late |
£10 for each following day - up to a 90 day maximum of £900. This is as well as the fixed penalty above. |
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6 months late |
£300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above. |
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12 months late |
£300 or 5% of the tax due, whichever is the higher.
In serious cases you may be asked to pay up to 100% of the tax due instead.
These are as well as the penalties above. |
Example
Mrs A's tax return is due on 31 January 2012 but HMRC don't receive it until 5 August 2012.
It is over six months late so she will have to pay all of the following:
- £900 penalty - this is £10 each day from 1 May to 29 July, when the maximum 90 day penalty is reached.
- £300 or 5 per cent of the tax due - whichever is the higher
-Ends-
For further information please contact:
Margot Cowhig, KPMG Corporate Communications
Tel: 0207 694 4246 Mobile: 07920 274856: margot.cowhig@kpmg.co.uk
KPMG Press Office: 0207 694 8773
About KPMG:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services
