Penalties for late returns

Income tax
Corporation Tax
PAYE
CIS
VAT
Limited company accounts

Income tax self assessment	Note	2008/09	2007/08
Standard penalty - up to 6 months late	1,4	£100	£100
Standard penalty - up to 12 months late	1	£200	£200
Return over 12 months late		100% of tax due	100% of tax due
Daily penalty - confirmed by Commissioners		£60	£60
Corporation Tax self assessment
First and second late returns - up to 3 months late		£100	£100
Third consecutive late return - up to 3 months late		£500	£500
First and second late returns - 3 - 6 months late		£200	£200
Third consecutive late return - 3 - 6 months late		£1,000	£1,000
Returns more than 6 months late		10% of tax outstanding	10% of tax outstanding
Returns more than 12 months late		20% of tax outstanding	20% of tax outstanding
PAYE
Year end return (form P35) and related forms		£100 per 50 employees per month (or part)	£100 per 50 employees per month (or part)
Form P11D(b) where due		£100 per 50 employees per month (or part)	£100 per 50 employees per month (or part)
Forms P11D		£300 per form	£300 per form
CIS
Monthly return - CIS 300		£100 per 50 subcontractors per month	£100 per 50 subcontractors per month
VAT : default surcharge periods
First return in surcharge period	3	2%	2%
Second return in surcharge period	3	5%	5%
Third return in surcharge period		10%	10%
Fourth and subsequent return in surcharge period		15%	15%

Notes

1. The fixed penalties for late self assessment returns cannot exceed the tax outstanding on the due date for the return. If all of the tax has been paid the fixed penalty is zero. This does not apply to partnership and trust returns.
2. VAT default surcharge also applies when the VAT return has been submitted but the VAT remains unpaid. The penalty is calculated at the rate shown applied to the VAT outstanding. Late repayment returns still register as a default, but no penalty is due.
3. Penalties at 2% and 5% are not levied if the amount of the penalty does not exceed £400, but the default still registers and increases the potential penalty for the next default.
4. Taxpayers who file late paper return, but pay all of their tax outstanding before 31 January 2009 will have their penalty "capped" at zero.
   So a late paper return will not, in 2008, accrue a penalty provided that the tax is paid by the due date. This does not apply to partnership returns.

 

Limited company accounts – late filing penalties

With effect from 1 February 2009 penalties for late filing of accounts are to increase. These penalties represent an increase of 50 percent and are intended to take account of inflation from 1992 to 2007.

The Current filing penalties are as follows:

Length of delay, based on the filing date	Private company	Public company
Three months or less	£100	£500
More than three months up to six months	£250	£1,000
More than six months to 12 months	£500	£2,000
More than 12 months	£1,000	£5,000

From 1 February 2009 the penalties are as follows

Length of delay, based on the filing date	Private company	Public company
Not more than one month	£150	£750
More than one month but not more than three months	£375	£1,500
More than three months but not more than six months	£750	£3,000
More than six months	£1,500	£7,500

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