New Penalties for Late Filing & Late Payment

From April 2011, if you don’t file your SA Tax Return or pay your tax on time, the penalties you will have to pay are changing.  The more you delay the greater you pay.

Paying the taxman late used to be seen as a relatively cheap way of getting an unarranged, unsecured loan.  The new rules mean it doesn’t pay to delay.

Penalties for filing late

  • One day late and you will be charged an initial penalty of £100 (even if you have no tax to pay or you have already paid all the tax you owe);
  • Three months late and you will be charged an automatic daily penalty of £10 per day, up to a maximum of £900;
  • Six months late and you will be charged further penalties, which are the greater of 5% of the tax due or £300;
  • Twelve months late and you will be charged yet more penalties, which are the greater of 5% of tax due or £300.  In particularly serious cases you face a higher penalty of up to 100% of the tax due.

Penalties for paying late

  • Thirty days late and you will be charged an initial penalty of 5% of the tax unpaid at that date;
  • Six months late and you will be charged a further penalty of 5% (i.e. 10%) of the tax that is still unpaid;
  • Twelve months late and you will be charged a further penalty of 5% (i.e. 15%) of the tax that is still unpaid.

These penalties are in addition to the interest you will be charged on all outstanding amounts, including any unpaid penalties, until payment is received.

How can Lynam Tax Investigation Experts help me?
Lynam Tax partners have a vast amount of practical experience in managing tax investigations and tax enquiries.    We can advise you on the best course of action and if appropriate, help you manage any necessary disclosures, in order to obtain the optimum outcome for you, your business and your family.

*For a free, private, no obligation consultation call:

Paul Lynam on 0845 643 9997

or Andrew Nutbrown on  07718 778710