Paper Tax Return deadline looming
Wednesday, 26 October 2011 08:57
Taxpayers only have a few days to file their Tax Return on paper without incurring a penalty.
Individuals have until 31 October 2011 to submit a paper Self Assessment Tax Return, although a later deadline of 31 January 2012 applies to those wishing to complete the process online.
Tax Returns filed after the deadline will attract a £100 fine, even if there is no tax to pay or it is eventually paid on time.
As previously announced, new Self Assessment penalties for late Returns and late payments come into effect this autumn and apply to Returns for 2010/11, and all future financial years.
The new penalties for late Self Assessment Returns are:
- an initial £100 fixed penalty, which will now apply even if there is no tax to pay, or if the tax due is paid on time;
- after 3 months, additional daily penalties of £10 per day, up to a maximum of £900;
- after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater; and
- after 12 months, another 5% or £300 charge, whichever is greater. In serious cases, the penalty after 12 months can be up to 100% of the tax due.
New penalties for paying late are 5% of the tax unpaid at 30 days, at 6 months, and at 12 months. Interest will also be charged on top of these penalties.