Despite a reduction in the number of late tax returns compared to the prior year, HMRC has sent out letters to around half-a-million tax payers chasing their returns for the 2010/11 tax year.  And there is a big sting in the tail – a fine of £1,200!

 HMRC fines for late payments have increased 4-fold as a result of the much harsher regime it introduced for the 2010/11 tax year.   Fines levied over the 6 months since the deadline of 31 January have rocketed up from £250million relating to the previous year to almost £1billion for the last tax year.

On top of the basic £100 late submission penalty after 2 February (itself two days later than normal because of a HMRC computer glitch!) there was a £10 daily penalty for every day late from 1 May to 31 July.  And from 1 August there is a further £300 fine for any tax returns which still haven’t been submitted – a total of £1,200.

 In addition, while the taxman might previously have waived the fine if there was no tax to pay, now the penalty is payable even if the tax return shows nil tax to pay.

If you have received a penalty notice or think you should have submitted a tax return then call Katy at Pemberley Accounting Services today on 07810 518812 for your free initial consultation.  The quicker you act the lower the penalties will be and getting help from a qualified accountant will mean you can pay the right tax at the right time in the future, avoiding any costly fines.