This Content Was Last Updated on November 5, 2015 by Jessica Garbett


There are changes coming up for penalties in respect of late Self Assessment returns.

Self Assessment applies to individuals not companies – and covers private tax payers with complex affairs, company directors, sole traders and business partners.

The new penalty regime applies for 2010/11 tax returns onward, so kicks in this coming January, 2012.

Late tax returns:

~ initial £100 penalty – no mitigation if no tax due, or all tax paid on time (previously the penalty could be mitigated on that basis)

~ after three months, £10 per day to maximum £900

~ after six months, the greater of £300 or 5% of tax due

~ after twelve months, the greater of £300 or 5% of tax due

These amounts are incremental of course.

The normal due date for SA returns is 31 January after the tax year if filing electronically (which we would do for clients) or 31 October for paper returns.

Penalties for late payment are:

~ 5% of tax unpaid at 30 days

~ 5% of tax unpaid at 6 months

~ 5% of tax unpaid at 12 months

Interest on top of the above.