Home > > 2008/09 Rates and Allowances > Penalties for late returns
Penalties for late returns
| Income tax self assessment | Note | 2008/09 | 2007/08 |
| Standard penalty - up to 6 months late | 1 | £100 | £100 |
| Standard penalty - up to 12 months late | 1 | £200 | £200 |
| Return over 12 months late | 100% of tax due | 100% of tax due | |
| Daily penalty - confirmed by Commissioners | £60 | £60 | |
| Corporation Tax self assessment | |||
| First and second late returns - up to 3 months late | £100 | £100 | |
| Third consecutive late return - up to 3 months late | £500 | £500 | |
| First and second late returns - 3 - 6 months late | £200 | £200 | |
| Third consecutive late return - 3 - 6 months late | £1,000 | £1,000 | |
| Returns more than 6 months late | 10% of tax outstanding | 10% of tax outstanding | |
| Returns more than 12 months late | 20% of tax outstanding | 20% of tax outstanding | |
| PAYE | |||
| Year end return (form P35) and related forms | £100 per 50 employees per month (or part) | £100 per 50 employees per month (or part) | |
| Form P11D(b) where due | £100 per 50 employees per month (or part) | £100 per 50 employees per month (or part) | |
| Forms P11D | £300 per form | £300 per form | |
| CIS | |||
| Monthly return - CIS 300 | £100 per 50 subcontractors per month | £100 per 50 subcontractors per month | |
| VAT : default surcharge periods | |||
| First return in surcharge period | 3 | 2% | 2% |
| Second return in surcharge period | 3 | 5% | 5% |
| Third return in surcharge period | 10% | 10% | |
| Fourth and subsequent return in surcharge period | 15% | 15% | |
Notes
- The fixed penalties for late self assessment returns cannot exceed the tax outstanding on the due date for the return. If all of the tax has been paid the fixed penalty is zero. This does not apply to partnership and trust returns.
- VAT default surcharge also applies when the VAT return has been submitted but the VAT remains unpaid. The penalty is calculated at the rate shown applied to the VAT outstanding. Late repayment returns still register as a default, but no penalty is due.
- Penalties at 2% and 5% are not levied if the amount of the penalty does not exceed £400, but the default still registers and increases the potential penalty for the next default.
2008/09 Rates and Allowances
Main taxes
- Key dates and deadlines
- Income tax
- Corporation tax
- Inheritance tax
- Capital gains tax
- Value added tax
- NI contributions
- Residential property letting taxation
- Main capital allowances
- Business deductions
- Penalties for late returns
- Trusts & settlements
- Non domiciled individuals
