Penalties

Penalties charged are for late tax returns and late payment.

For return years 2010/11 onwards

For return years 2009/10 and earlier

If your return is not received by the date it is due on a fixed penalty of £100 will be charged. If HM Revenue & Customs (HMRC) have still not received your return six months after the date it was due on a further penalty of £100 is charged.

Please note:

• If you are a partner and the partnership return has not been received by the date it is due on you will be charged £100, irrespective of whether your own return has been received or not. A second penalty of £100 will be charged if the partnership return has not been received 6 months after it was due on.
• Where an individual return is received late and the overall liability is less than the total penalty charged, the penalty is capped to the total amount of the liability.
• 
  For example: A tax return was due on 31 January 2006 but was received on 12 October 2006. Therefore the following penalties were charged: Fixed Penalty 1 issued on 28 February 2006 for £100.00 Fixed Penalty 2 issued on 31 July 2006 for £100.00 Total penalties equals £200.00 Overall liability from return equals £71.50 Penalties therefore reduced to £71.50.

For return years 2010/11 onwards

Late Filing Penalty
Partnership Late Filing Penalty
Daily Penalty
Partnership Daily Penalty
6 Month Late Filing Penalty
Partnership 6 Months Late Filing Penalty
12 Months Late Filing Penalty
Partnership 12 Months Late Filing Penalty
30 Days Late Payment Penalty
6 Months Late Payment Penalty
12 Months Late Payment Penalty
 

Late Filing Penalty
For tax return years 2010/11 onwards, if the return is not filed by the due date a late filing penalty of £100 is charged. The penalty charge is a fixed amount and will not be reduced (capped) because the tax liability is less than the penalty, or there is no tax liability or a refund is due.
 

Partnership Late Filing Penalty
For tax return years 2010/11 onwards, if the Partnership return is not filed by the due date a late filing penalty of £100 is charged on each partner.
 

Daily Penalty
For tax return years 2010/11 onwards, if the return is not filed three months after the return due date, daily penalties start to accrue. Daily penalties are charged at £10 per day up to a maximum of 90 days. If the return is filed during the 90 days, the £10 per day daily penalty is charged up to and including the date the return was filed.
 

Partnership Daily Penalty
For tax return years 2010/11 onwards, if the Partnership return is not filed 3 months after the return due date, daily penalties start to accrue. Daily penalties are charged at £10 per day up to a maximum of 90 days on each partner within the Partnership. If the return is filed during the 90 days, the £10 per day daily penalty is charged up to and including the date the return was filed.

6 Months Late Filing Penalty
For tax return years 2010/11 onwards, if the return is not filed 6 months after the return due date, a late filing (tax geared) penalty is charged.

The penalty is the greater of £300 or 5% of the amount of the tax due on the tax return or from a determination.

Partnership 6 Months Late Filing Penalty
For tax return years 2010/11 onwards, if the Partnership return is not filed 6 months after the return due date, a late filing (tax geared) penalty is charged on each partner within the Partnership.

The penalty is the greater of £300 or five per cent of the amount of the tax due on the tax return or from a determination.

12 Months Late Filing Penalty
For tax return years 2010/11 onwards, if the return is not filed 12 months after the return due date, a late filing (tax geared) penalty is charged.

The penalty is the greater of £300 or 5% of the amount of the tax due on the tax return or from a determination.

Partnership 12 Months Late Filing Penalty
For tax return years 2010/11 onwards, if the Partnership return is not filed 12 months after the return due date, a late filing (tax geared) penalty is charged on each partner within the Partnership.

The penalty is the greater of £300 or 5% of the amount of the tax due on the tax return or from a determination.

30 Days Late Payment Penalty
For tax return years 2010/11 onwards a first late payment penalty is imposed where a liability is outstanding more than 30 days after it's due date.

This first amount is 5% of the amount that was outstanding 30 days after it was due.

6 Months Late Payment Penalty
For tax return years 2010/11 onwards a second late payment penalty is imposed where a liability is outstanding more than 30 days plus 5 months after it's due date.

This second amount is 5% of the amount that was outstanding 30 days plus 5 months after it was due.

12 Months Late Payment Penalty
For tax return years 2010/11 onwards a third late payment penalty is imposed where a liability is outstanding more than 30 days plus 11 months after it's due date.

This third amount is 5% of the amount that was outstanding 30 days plus 11 months after it was due.