This is a simple question for those who know the answer but I am new to tax and I am only used to the new rules.
Can anyone tell me the penalties & surcharges etc for late filing and late payment for Tax Returns y/e 2008, 2009 & 2010.
Thanks
Replies (11)
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It depends
The rules changed after the 09/10 return.
Have a look at the following link as a guide.
http://www.hmrc.gov.uk/sa/late-return-pens.htm
Under the old rules if there was a refund or no tax due, then the fines & interest charges are quashed.
Interest
Current rate is 3.0% from 29/9/2009
http://www.hmrc.gov.uk/rates/interest.htm
For previous rates, see
Not quite
You would have £200 of late filing penalties, £35 of interest for one year (the rate is 3% per annum!) , so by now you would have accrued around £110 of interest in respect of the 2008 liability.
In addition you would have a 5% late payment surcharge falling due on each of 28 feb 2009 and 31 July 2009.
I assume that you were issued with a tax reurn for this year? If you were not you could be looking at a significantly stiffer additional penalty (up to the level of the tax not paid on time) for failure to notify HMRC of the need to submit a return.
If I were you I would speak to a tax adviser
as you could be looking at a failure to notify penalty as well. As mentioned in my previous post there was a requirement to notify HMRC by October 2008 if you had not been issued with a tax return and had a liability for the 2008 tax year.
If you did not do this then you are potentially facing a penalty of up to 100% of the tax not paid by 31 January 2009 (this is normally mitigated down but the fact that you have been "contacted" does not bode well for the extent of the mitigation).
This non-notification penalty is in addition to the late filing and late payment surcharges.
Had HMRC previously asked for returns
and you had not done the, or have they only just asked for the returns?
If the latter then the filing and payment due date is three months from the notice requiring the returns by HMRC.
Of course there may still be late notification penalties, which is a seperate matter
interest on surcharges and penalties
Not sure if you have grasped this from the above but interest also runs on surcharges and penalties and the due dates for interest are from dates payments on account would have been due.
I would get the returns in and wait for the statement!
Out of curiousity
Why do you have tax to pay for the earlier years?
As in, did you have rental income undeclared, a self employment?