Penalties

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clegganator
clegganator Registered Posts: 184 Dedicated contributor 🦉
in General accounting discussion
Does the £100 penalty for not submitting and paying tax over still if you have sent your return but not paid your tax?

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  • burg
    burg Registered, Moderator Posts: 1,441 mod
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    The penalties stand for this year regardless of tax outstanding. Previously it has been limited to the tax o/s at 31 Jan
    Regards,

    Burg
  • clegganator
    clegganator Registered Posts: 184 Dedicated contributor 🦉
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    So, if we submit a client's return in time and he has tax outstanding at 31st Jan he will have a £100 penalty to pay on top of tax? Can you point me to the legislation please?
  • coojee
    coojee Registered Posts: 794 Epic contributor 🐘
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    As far as I can make out the £100 is just for a late return. A return on time but late tax would only incur the 5% charge and the interest on the tax. I don't deal with tax though so I could be wrong.
  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
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    The penalty of £100 is for the late submission of a tax return, whether or not there is any tax due. Interest is then payable on any tax not paid by the due date.
  • clegganator
    clegganator Registered Posts: 184 Dedicated contributor 🦉
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    T.C. wrote: »
    The penalty of £100 is for the late submission of a tax return, whether or not there is any tax due. Interest is then payable on any tax not paid by the due date.

    Can you point me to the legislation confirming that please?
  • jamesm96
    jamesm96 Registered Posts: 523
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    Yeah the payment penalties are separate from the filing penalties so if it's filed on time but not paid, then there's a 'late payment surcharge of 5% of the overdue tax if it's paid more than 30 days late, then an additional 5% of the overdue tax if it still isn't paid within six months of the deadline, then yet another 5% surcharge once the payment's a year late.

    Then there's also interest at 3% accruing on all outstanding amounts.

    If you can agree a 'Time to Pay' then I believe these may be waived as long as it's agreed before the deadline, but it's been a couple of years since any Self Assessment clients have needed time to pay (most of mine now use Ltd Co's) so this may have changed.
  • jamesm96
    jamesm96 Registered Posts: 523
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    clegganator wrote: »
    Can you point me to the legislation confirming that please?

    It's here mate: http://www.hmrc.gov.uk/sa/deadlines-penalties.htm#3

    And the surcharges thing is here: http://www.hmrc.gov.uk/sa/deadlines-penalties.htm#6
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
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    I still have to pay them £1.40, according to the self assessment I did. I'd better pay it before all the interest starts mounting up :D
  • clegganator
    clegganator Registered Posts: 184 Dedicated contributor 🦉
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    jamesm96 wrote: »
    It's here mate: http://www.hmrc.gov.uk/sa/deadlines-penalties.htm#3

    And the surcharges thing is here: http://www.hmrc.gov.uk/sa/deadlines-penalties.htm#6

    Cheers. I was on a course and the guy running it made it sound like it applied to even if the return was on time but payment was late. Or his words fell upon deaf ears.

    Glad that wasn't in the personal tax exam!
  • jamesm96
    jamesm96 Registered Posts: 523
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    clegganator wrote: »
    Cheers. I was on a course and the guy running it made it sound like it applied to even if the return was on time but payment was late.

    What, the £100 flat-rate penalty?

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