Most of us know that there are financial penalties which HM Revenue & Customs (HMRC) can levy when a tax payment is late. However, many people pay less attention to the fact that penalties also apply if the tax return itself is received after the due date.
Since April 2011 the penalty structure which has been in place means a fine of £100 if the return is even just one day late, with the amount increasing daily from 1 May. If you don’t file the return until August, you will find yourself with a fixed penalty of £1,300. If your return is more than six months late, you could be fined a percentage of the tax bill as well.
What if you have no tax to pay?
Your tax return still needs to be submitted before the deadline even in cases where no tax will be payable, and failure to achieve this will still result in the penalties mentioned above.
What if you end up with a penalty?
Even if you find yourself in a situation where you have had a penalty imposed, it is still important to talk to a professional who fully understands the penalty rules, to ensure that you don’t pay any more than you have to.
