Tax Chat - Increased tax return penalties – WATCH OUT!

Increased tax return penalties – WATCH OUT!

Do you leave your tax return until the last minute? If you do you need to make sure that your 2010/11 return is submitted by the deadline of 31 January 2012 to avoid the late filing penalty of £100.

The deadline for 2010/11 returns is 31 January 2012 and is now even more important than before.  Historically, provided you paid your tax on time any late filing penalty would be reduced to nil.  Rules introduced this year however now mean this relaxation is no longer available.  Therefore, regardless of whether you have a tax liability or whether it has been paid on time, a filing penalty of £100 will be levied if HMRC do not receive your tax return by 31 January 2012.  And to add to the pain, if your tax return is more than 3 months late an additional £10 per day will also begin to accrue.

In summary, try to avoid delaying consideration of your tax return to the new year, get your details organised now and give us a call should you need any assistance.  We are now past the deadline for paper submission so returns will need to be filed online, and remember if you are a director it is a compulsory requirement to prepare a tax return.