LITRG gives an overview of the new penalty system for late tax returns and urges those filing on paper not to miss the 31 October 2011 deadline for 2010/11 returns.
Introduction
Many of those who complete a Self Assessment tax return have now switched to filing online, which still allows you to file by 31 January 2012 for the 2010/11 tax year. However, for many taxpayers this is either impossible or impractical, or they still prefer to complete and submit a paper return, which they must do by the earlier deadline of 31 October 2011.
In the past, it was possible to reduce the £100 initial penalty if you filed late but tax was paid by the following 31 January. This is no longer the case. In addition, significant new daily penalties will be charged automatically for each day you are late over three months, and tax-based penalties for those filing even later.
Overview of 2010/11 deadlines and penalties
The table below summarises the ordinary tax return deadlines and key penalty dates.
| Paper tax return | Online tax return | |
| Tax return deadline | 31 October 2011 |
31 January 2012 |
| If you want 2010/11 tax of up to £2,000 to be collected via your 2012/13 PAYE code, submit your tax return by | 31 October 2011 | 30 December 2011 |
| 2010/11 balance of tax to be paid by | 31 January 2012 | 31 January 2012 |
| First payment on account of tax for 2011/12, if due | 31 January 2012 | 31 January 2012 |
|
£100 fine for a late return chargeable from *see note below |
1 November 2011 | 1 February 2012 |
|
£10 per day penalties for a return more than three months late start from *see note below |
1 February 2012 | 1 May 2012 |
|
Further 5% of tax due or £300 fine for a return six months late due from |
1 May 2012 | 1 August 2012 |
|
Further 5% of tax due or £300 fine for a return 12 months late due from *see note below |
1 November 2012 | 1 February 2013 |
* Note:
From the table above, you can see there is an important difference with penalties for late filing of a paper return compared to late filing of an online return. Because the filing date for paper returns is three months earlier than for online returns, the penalty trigger dates are also three months sooner. Therefore, if you file a 2010/11 return on or after 1 November 2011, you would be well advised to do so online to avoid a £100 penalty. Online filing is even more important if you file after 1 February 2012 – otherwise, you will already be into a situation where daily penalties are due.
More information
LITRG’s full article on the new penalties together with pointers on filing returns both on paper or online can be found on the group’s website.
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