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Home > > 2008/09 Rates and Allowances > Penalties for late returns

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.

Penalties

How late are the accounts delivered Penalty chargeable to 31 January 2009 Penalty chargeable from 1 February 2009
  Private Company PLC Private Company PLC
Not more than one month £100 £500 £150 £750
More than one month but not more than three months £250 £1,000 £375 £1,500
More than three months but not more than six months £500 £2000 £750 £3,000
More than six months £1,000 £5,000 £1,500 £7,500

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