Clients often ask if there are any strict deadlines in place, and what happens if they miss them. With that in mind here's a handy list of HMRC, and the penalties that go with them.
Self-assessment missed submission deadline
You will pay penalty if you, when sending in a tax return, you miss the deadline for submission or paying your tax bill.
- Missing filling deadline, flat rate £100
- 3 months late Daily penalty £10 per day for up to 90 days, Max £900
- 6 months late 5% of tax due or £300, if greater
- 12 months late another £300 fine or 5% of the tax owing, whichever is greater.
Penalties for late payment of tax owing
- 30 days late 5% charge on tax owed on that date
- 6 months late additional 5% charge on tax owed on that date accumulative
- 12 months late additional 5% charge on tax owed on that date accumulative
Company tax deadline
- Payment deadline 9 months and 1 day after your accounting period ends
- Filing deadline 12 months after your accounting period ends
Penalties for late filing
- 1 day late £100 flat penalty
- 3 months late Another £100
- 6 months late HMRC will make an estimate of your tax liability and add 10% to the unpaid tax amount
- 12 months late Another 10% of any unpaid tax
Penalties for late payment
Unlike many other taxes, there is no actual penalty for not paying corporation tax on time. HOWEVER, the HMRC will charge you interest (currently set at £3% p.a.) which accrues on daily basis from the first day it is late.
If you're an existing client, and have any questions about penalties (and how to avoid them) drop me a line.