Penalty !

The tax return season for 2010/11 returns is due upon us.

This year though the rules for penalties have changed significantly:-

Late Filing

• Initial £100 late filing penalty still exists
• From three months late, additional daily penalty of £10, up to a maximum of £900
• From six months late, additional penalty of 5% of the tax due (de-minimis £300)
• From twelve months late, additional 5% or £300 penalty

Late Payment

5% surcharges will apply at:-

• 30 days
• 6 months
• 12 months

If you’re an accountant, when will you start telling your clients?

Eaves & Co, Tax Specialists, Leeds, West Yorkshire