Penalties for late returns
The 2009 Budget introduced wide ranging proposals to reform the penalties regime.
| Income tax self assessment |
Note |
2009/10 |
2008/09 |
| Standard penalty - up to 6 months late |
1,4 |
£100 |
£100 |
| Standard penalty - up to 12 months late |
1 |
£200 |
£200 |
| Return over 12 months late |
|
100% of tax due |
100% of tax due |
| Daily penalty - confirmed by Commissioners |
|
£60 |
£60 |
|
Corporation tax self assessment
|
| First and second late returns - up to 3 months late |
|
£100 |
£100 |
| Third consecutive late return - up to 3 months late |
|
£500 |
£500 |
| First and second late returns - 3 - 6 months late |
|
£200 |
£200 |
| Third consecutive late return - 3 - 6 months late |
|
£1,000 |
£1,000 |
| Returns more than 6 months late |
|
10% of tax outstanding |
10% of tax outstanding |
| Returns more than 12 months late |
|
20% of tax outstanding |
20% of tax outstanding |
|
PAYE
|
| Year end return (form P35) and related forms |
|
£100 per 50 employees per month (or part) |
£100 per 50 employees per month (or part) |
| Form P11D(b) where due |
|
£100 per 50 employees per month (or part) |
£100 per 50 employees per month (or part) |
| Forms P11D |
|
£300 per form |
£300 per form |
|
CIS
|
| Monthly return - CIS 300 |
|
£100 per 50 subcontractors per month |
£100 per 50 subcontractors per month |
|
VAT : default surcharge periods
|
| First return in surcharge period |
3 |
2% |
2% |
| Second return in surcharge period |
3 |
5% |
5% |
| Third return in surcharge period |
|
10% |
10% |
| Fourth and subsequent return in surcharge period |
|
15% |
15% |
Notes
- The fixed penalties for late self assessment returns cannot exceed the tax outstanding on the due date for the return. If all of the tax has been paid the fixed penalty is zero. This does not apply to partnership and trust returns.
- VAT default surcharge also applies when the VAT return has been submitted but the VAT remains unpaid. The penalty is calculated at the rate shown applied to the VAT outstanding. Late repayment returns still register as a default, but no penalty is due.
- Penalties at 2% and 5% are not levied if the amount of the penalty does not exceed £400, but the default still registers and increases the potential penalty for the next default.
- Taxpayers who file late paper return, but pay all of their tax outstanding before 31 January 2010 will have their penalty "capped" at zero.
So a late paper return will not, accrue a penalty provided that the tax is paid by the due date. This does not apply to partnership returns.
Limited company accounts – late filing penalties
With effect from 1 February 2009 penalties for late filing of accounts increased. These penalties represent an increase of 50 percent and are intended to take account of inflation from 1992 to 2007.
From 1 February 2009 the penalties are:
| Length of delay, based on the filing date |
Private company |
Public company |
| Not more than one month |
£150 |
£750 |
| More than one month but not more than three months |
£375 |
£1,500 |
| More than three months but not more than six months |
£750 |
£3,000 |
| More than six months |
£1,500 |
£7,500 |
more
