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Helping you with your tax returns

The penalties for late tax returns can mount quickly. With income tax the first day will cost you £100, and every day beyond that for three months will add another £10, capping at £900. With VAT you can see surcharges of 2%, 5%, 10% and even 15% with each return within the surcharge period. And defaulting on your PAYE or NIC taxes can result in penalties of 1-4% of the total amount that’s paid late.

All of this can be avoided if you have a Chartered Accountant on hand to help you with your tax returns. We’ll help you with understanding what the penalties are and when they become applicable, and with filling out any forms necessary for your tax returns. We can also make a plan with you to help you avoid problems in the future.

Income tax penalties

Income tax self-assessment Standard penalties for filing late
One day late £100 (or £100 per partner for a partnership)
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
For failure to notify liability or for careless 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
Where the failure or inaccuracy relates to an offshore asset or income these penalties are scaled up by either 50% or 100%.
Standard penalties for paying balancing amount 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
Other penalties:
Failure to keep and retain tax records: up to £3,000 per year of assessment
False statements to reduce payments on account: up to the shortfall of tax
Failure to produce documents or obstructing an inspection: £300 plus daily penalty of up to £60
The Upper Tribunal may impose a penalty where significant tax is at risk.

PAYE penalties

Number of defaults Penalty % (of total amount paid late)
1 0%
2, 3, 4 1%
5, 6, 7 2%
8. 9. 10 3%
11 or more 4%

VAT: default surcharge periods

Number of returns Penalty %
First return in surcharge period 2%
Second return in surcharge period 5%
Third return in surcharge period 10%
Fourth and subsequent return in surcharge period 15%
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We're based in Hampton, and provide our accounting services to people across Surrey and South West London.

Get help filling out your tax returns. It starts with a free 30 minute consultation. Call 020 8979 5836

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