Do your tax on time or you could be fined badly
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From April 2011, if you don’t file your SA returns or pay your tax on time, the penalties you will have to pay are changing. The more you delay the greater the penalty.
Penalties for filing late:
· One day late you will be charged an initial penalty of £100 even if you have no tax to pay or you have already paid all the tax you owe.
· Three months late and you will be charged an automatic daily penalty of £10 per day, up to a maximum of £900.
· six months late you will be charged further penalties, which are the greater of 5% of tax due or £300
· Twelve months late you will be charged yet more penalties, which are the greater of 5% of tax due or £300. In particularly serious cases you face higher penalties of up to the tax due.
Penalties for paying late:
· Thirty days late and you will be charged an initial penalty of 5% of the tax unpaid at that date.
· Six month slate and you will be charged a further penalty of 5% of the tax that is still unpaid.
· Twelve months late and you will be charged a further 5% of the tax that is still unpaid.
Riyas Kallan. Taxfile, Tulse Hill.
