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Up to £1,600 Penalty for late submission of personal tax returns where no tax is due to HMRC

HMRC records show that 1,566 people filed their personal tax return on Christmas day 2013, a 1% increase on the prior year.

 

With the festive season nearly upon us and the 31 January deadline looming, it is important to ensure your affairs are in order. HM Revenue & Customs can levy substantial penalties for late submission of Self Assessment Returns, even if there is no tax to pay.

Below is a summary of the penalties that will be enforced by HMRC for late submission of personal tax returns for the 2013/14 tax year - which are due for submission online by 31 January 2015:

DEADLINE OF 2013/14TAX RETURN

PENALTY

If not submitted online by 31 January 2015 deadline

£100

If still not submitted online by 31 July 2015

Additional penalty - £10 per day for 90 days (maximum £900).

If still not submitted online by 31 July 2015

Additional penalty - greater of £300 and 5% of the liability shown on

the tax return

If still not submitted online by 31 January 2016

Additional penalty – greater of £300 and a relevant percentage applied to

the liability shown on the return. The relevant percentage is decided by

HMRC and depends on the reason for not submitting the return earlier.

 

FURTHER DEBATE ON TAX RETURN SUBMISSIONS WITH TAX TV ONLINE AT:www.rothmansllp.com/lets-talk-tax

In practical terms this means that if someone with no tax to pay (but needs to file a tax return) does not do so by 31 July 2015 they will face a penalty of £1,300 – which will rise to £1,600 if not submitted by 31 January 2016.

If you are unsure whether or not you need to file a tax return or need advice/assistance in completing yours do not hesitate to contact us.

Habib Brora

Habib Brora
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