Revenue reminder on new tax return penalties

HM Revenue & Customs (HMRC) has issued a press release reminding individuals and businesses about the new penalties for late Self Assessment returns and late payments, that come into effect form 31 October 2011.

The changes affect Self Assessment returns for 2010/11, and all future tax years.

New penalties for late Self Assessment Tax Returns

  • an initial £100 fixed penalty.  This applies even if:  there is no tax to pay, or 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; and
  • 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.

New penalties for paying tax late
The penalties for paying late are 5% of the tax unpaid at:

  • 30 days;
  • 6 months (i.e. 10% in total); and
  • 12 months (i.e. 15% in total).

Interest will also be charged on top of these penalties.


The tax return deadlines are still: 31 October for postal hard copies, or 31 January for online returns.
The deadline for paying any tax due is still 31 January.

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 or Gemma Lynam today on 0845 643 9997