Home > > Tax rates and allowances > Penalties for late returns and late payment of tax
Penalties for late returns and late payment of tax
| Income tax self assessment | From 6 April 2011 | |
| Standard penalties for filing late: | ||
| One day late | £100 | |
| Three months late | £10 per day up to a maximum of £900 | |
| Six months late | Further penalties calculated on the greater of 5% of tax due on £300 | |
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For failure to notify liability or for inaccuracies in a return: Failure not deliberate: up to 30% of tax Failure deliberate but not concealed: up to 70% of tax Failure deliberate and concealed: up to 100% of tax |
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| Standard penalties for paying late: | ||
| Thirty days late | 5% of the unpaid tax due at that date | |
| Six months late | A further 5% penalty of the tax that remains unpaid at the date | |
| Twelve months late | A further 5% of the tax that remains unpaid at the date | |
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OTHER PENALTIES: Failure to keep and retain tax records: up to £3,000 per year of assessment False statements to reduce interim payments: up to the shortfall of tax Failure to produce documents or obstructing an inspection: £300 plus daily penalty of £60 The Upper Tribunal may impose a penalty where significant tax is at risk. |
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Corporation tax self assessment |
2011/12 | 2010/11 | ||||||||||||||||||||||||||
| First and second late returns - up to 3 months late | £100 | £100 | ||||||||||||||||||||||||||
| Third consecutive late return - up to 3 months late | £500 | £500 | ||||||||||||||||||||||||||
| First and second late returns - 3 - 6 months late | £200 | £200 | ||||||||||||||||||||||||||
| Third consecutive late return - 3 - 6 months late | £1,000 | £1,000 | ||||||||||||||||||||||||||
| Returns more than 6 months late | 10% of tax outstanding | 10% of tax outstanding | ||||||||||||||||||||||||||
| Returns more than 12 months late | 20% of tax outstanding | 20% of tax outstanding | ||||||||||||||||||||||||||
| For failure to notify liability or for inaccuracies in a return:
Failure not deliberate: up to 30% of tax Failure deliberate but not concealed: up to 70% of tax Failure deliberate and concealed: up to 100% of tax OTHER PENALTIES Failure to keep and retain tax records: up to £3,000 per year of assessment False statements to reduce interim payments: up to the shortfall of tax Failure to produce documents or obstructing an inspection: £300 plus daily penalty of £60 |
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PAYE |
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| Year end return (form P35) and related forms | £100 per 50 employees per month (or part) | |||||||||||||||||||||||||||
| Form P11D(b) where due | £100 per 50 employees per month (or part) | |||||||||||||||||||||||||||
| Forms P11D | £300 per form | |||||||||||||||||||||||||||
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For 2011/12 end 2012/13 The penalty is based on the number of items the employer has failed to deliver: |
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CIS |
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| Monthly return - CIS 300 | £100 per 50 subcontractors per month | £100 per 50 subcontractors per month | ||||||||||||||||||||||||||
| Failure to provide information | £3,000 | £3,000 | ||||||||||||||||||||||||||
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VAT : default surcharge periods |
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| First return in surcharge period | 2% | 2% | ||||||||||||||||||||||||||
| Second return in surcharge period | 5% | 5% | ||||||||||||||||||||||||||
| Third return in surcharge period | 10% | 10% | ||||||||||||||||||||||||||
| Fourth and subsequent return in surcharge period | 15% | 15% | ||||||||||||||||||||||||||
Notes
- The fixed penalties for late self assessment returns cannot exceed the tax outstanding on the due date for the return. If all of the tax has been paid the fixed penalty is zero. This does not apply to partnership and trust returns and this 'cap' is due to be withdrawn shortly.
- VAT default surcharge also applies when the VAT return has been submitted but the VAT remains unpaid. The penalty is calculated at the rate shown applied to the VAT outstanding. Late repayment returns still register as a default, but no penalty is due.
- Penalties at 2% and 5% are not levied if the amount of the penalty does not exceed £400, but the default still registers and increases the potential penalty for the next default.
Late payment penalties
Self Assessment
Penalties of 5% of the tax unpaid are charged one month and six months after the due date for tax payment (31 Jan) on 28 February & 31 July.
VAT
The default surcharge penalty system also applies to late payment of VAT liabilities, even if the return is filed on time.
PAYE, NIC and CIS tax
There is a penalty regime under which late payment of PAYE, NIC and related liabilities during the tax year will attract a penalty. The first late payment in the tax year is not liable to penalties but subsequent late payments attract a penalty base on the total number of late payments in the tax year.
| Number of defaults | Penalty % |
| 1 | 0 |
| 2,3,4 | 1% |
| 5,6,7 | 2% |
| 8,9,10 | 3% |
| 11 or more | 4% |
Tax is due by 19th of the following month or 22nd if paid electronically. Small employers may use the quarterly payment scheme.
Limited company accounts – late filing penalties
Penalties for late filing are as follows:
| Length of delay, based on the filing date | Private company | Public company |
| Not more than one month | £150 | £750 |
| More than one month but not more than three months | £375 | £1,500 |
| More than three months but not more than six months | £750 | £3,000 |
| More than six months | £1,500 | £7,500 |
Main taxes
- Key dates and deadlines
- Income tax
- Corporation tax
- Inheritance tax
- Capital gains tax
- Value added tax
- National insurance contributions
- Residential property letting
- Main capital allowances
- Business deductions
- Penalties for late returns
- Trusts and settlements
- Non domiciled individuals