Tax Return deadlines and penalties
A little reminder of return deadlines and penalties at present. A new penalty regime is due to be phased in with MTD from next April.
Payroll – Wages must be advised to HMRC on or before payday. Late submission can trigger penalties starting at £100.
Auto enrolment pensions – staff in receipt of wages in excess of £10,000pa must be auto enrolled. And if they opt out, must be re-enrolled every 3 years. Penalties for not fulfilling these obligations start at £400.
PAYE is due 19th month. Small employers may pay quarterly. Payment after 22nd triggers penalties that are charged like interest, on top of interest – starting at 1% with higher rates the more times you are late in the tax year and levied at the end of the tax year. Payments more than 6 months late incur additional 5% penalties.
Benefits forms P11D – due 6th July 2021 with penalties levied at £100 per month from 19th July 2021
VAT returns – A late return or a late payment counts as a late submission. There is no penalty for your first offence, but the default is noted on your record. For second and subsequent offences a penalty is levied, as a percentage of the VAT due per that late return, dependent on the number of late returns you currently have on your record.
| Late returns on record | 1 | 2 | 3 | 4 | 5 or more |
| Surcharge penalty rate | 0% | 2% | 5% | 10% | 15% |
Higher penalty rates apply if turnover exceeds £150,000.
Your slate is cleared back to zero if you submit 4 consecutive returns on time.
Accounts to Companies House – usually due 9 months after your company yearend or 21 months after incorporation. Penalties start at £150 for your first late submission, but increase if over 3 months late and are doubled if you were late last year.
Corporation Tax Return – A corporation tax return, accompanied by tax computations and a set of accounts is due to HMRC, usually 12 months after the yearend. Penalties start at a fixed £100, but increase for later submissions and if 3 consecutive returns are late. Some of these further penalties are calculated as a percentage of the tax due.
Corporation Tax – late payment of corporation tax liabilities attracts interest.
Personal tax returns – returns are due 31st January following the tax year end, or 31st October if submitted on paper. First fixed penalty for non-submission is £100, but further penalties of £10 per day are levied from 1st May for up to 90 days. If returns are still not submitted then further penalties of 5% of the tax due or £300 may levied at 6 months and again at 12 months overdue.
Personal tax – payment on account of personal tax may be due 31st January in year and 31st July following, but the balance of tax will become due 31st January following the tax year end. Interest is charged on late payment, with surcharge penalties levied, at 5% of the outstanding tax, at each of 30 days, 6 months and 12 months ove
