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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 6^th of April 2010 there will be penalties imposed for paying the PAYE late. PAYE is due to be paid on the 19^th 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.