News
Tax Update (February 2010)
Penalties are increasing!
Companies house
The dates for filing private limited company accounts have been
brought forward by a month and now need to be filed within
nine months of the year end. If the accounts are
filed late then the following penalties apply:
| Not more than 1 month |
£150 |
| More than 1 month but not more than 3 months |
£375 |
| More than 3 months but not more than 6 months |
£750 |
| More than 6 months |
£1,500 |
New PAYE penalties for late payment
From the 6th of April 2010 there will be penalties
imposed for paying the PAYE late. PAYE is due to be paid on the
19th of each month. The below table shows how penalties
will be calculated:
|
Number of times payments are late in a tax
year
|
Penalty Percentage
|
|
1
|
No penalty
|
|
2-4
|
1%
|
|
5-7
|
2%
|
|
8-10
|
3%
|
|
11 or more
|
4%
|
Penalties for all tax returns
Penalties will be imposed if a tax return or other tax document
is inaccurate. The penalties will range from:
|
|
Minimum
|
Maximum
|
|
Reasonable care
|
No penalty
|
No penalty
|
|
Careless unprompted
|
0%
|
30%
|
|
Careless prompted
|
15%
|
30%
|
|
Deliberate unprompted
|
20%
|
70%
|
|
Deliberate prompted
|
35%
|
70%
|
|
Deliberate & Concealed
unprompted
|
30%
|
100%
|
|
Deliberate & Concealed prompted
|
50%
|
100%
|
HMRC will reduce a penalty from the maximum if you:
- Inform them about any inaccuracies
- Help them work out what extra tax is due
- Provide them access to check your figures
It is therefore important that you keep on top of your tax
returns to avoid unnecessary penalties being charged. Contact our
Advice Service should you require more information or support.