The penalties for late tax returns are: -
· Initial £100 fixed penalty which applies even if there is no tax payable, or even if you have paid tax due on time.
· After 3 months, additional daily penalties of £10 per day up to a maximum of £900.
· After 6 months a further penalty of 5% of the tax due or £300, whichever is greater.
· After 12 months another 5% penalty or £300 charge, whichever is greater.
· There are also additional penalties if you are late paying your tax of 5% of the tax unpaid on 30 days, 5% on 6 months and a further 5% on 12 months.
It is essential that tax returns are always submitted on time.