A new penalty regime for self-assessment is to be introduced from 1 May, ACCA (the Association of Chartered Certified Accountants) has warned.
Chas Roy-Chowdhury, ACCA head of taxation said: 'The new penalty regime, which is now charged on late tax returns, could take quite a significant chunk out of your earnings. It is hugely important that, even if you don’t believe you owe any tax, get your return in as soon as possible.'
The new penalty regime charges an initial £100 for late filing, and then £10 per day for every day you are late, up to a maximum of £900. If you are six months late you will be charged £300 or 5% of the tax due, whichever is greater on top of the previous charges. If you are 12 months late, you will be charged £500 or 5% of the tax owed, whichever is greater, again on top of all previous charges.
Mr Roy-Chowdhury continued: 'Even if you owe no tax and are a year late filing you will have racked up £1800 in fines. HMRC is sending a message to all who have to file self-assessment, and that is regardless of what you may or may not owe, get your return in on time.'