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New rules on tax return penalties

There are penalties if you do not make full and accurate tax returns. The government has taken steps to formalise the basis on which penalties are applied.

In broad terms, the new rules for returns filed on or after 1 April 2009 provide for a moderate penalty of up to 30% for failure to take reasonable care, higher penalties of up to 70% for deliberate understatement and still higher penalties of up to 100% for deliberate understatement with concealment. Taxpayers found to have made a genuine mistake will not be penalised. The deadlines for the filing of 2008/09 self-assessment tax returns are summarised below:

 

 Notice to complete sent on or before 31 July 2009  Notice to complete sent after 31 July 2009
 File paper return (tax owed of less than
£2,000 can be collected via PAYE)
 31 October 2009* 31 October 2009 or three months after the issue of the notice if later.
 File online (tax owed of less than £2,000
can be collected via PAYE)
 30 December 2009 30 December 2009.
 File online (no facility for collection of
tax owed via PAYE)
 31 January 2010* 31 January 2010 or three months after the issue of the notice if later.*

*Automatic £100 penalty if a return is filed after this date.

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Contact Us - Salisbury

Clifford Fry & Co Accountants
St Mary's House, Netherhampton, Salisbury, Wiltshire, SP2 8PU

Telephone: 01722 743114

Contact Us - Andover

Clifford Fry & Co Accountants
Basepoint, Andover Business Centre, Caxton Close, Andover, Hampshire, SP10 3FG

Telephone: 01264 326338