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UK Filing Deadlines and Penalty Information

Once you have determined that a United Kingdom tax filing requirement exists you will need to know that the tax return has to be filed by the 31 January following the close of the tax year, except in some rare circumstances. Failure to do so will result in certain penalties and interest being applied.

The important dates in the UK taxation calendar, for tax returns in the year ended 5 April 2011, are summarised in the table below. The penalty system is new for this filing year so penalties for earlier years would be calculated in a different way - the old penalty system was less punitive and additionally was tax based. As such under the old system if you owed no tax you did not have any penalties or interest to pay (except in very rare circumstances). The new system no longer has any basis in the tax amount due and the penalties will be charged regardless of whether you owe tax or not.

Filing date if you want Inland Revenue to Calculate Tax	31 October 201 1
Filing and payment date if you want to calculate your own tax	31 January 201 2
First payment on account	31 January 201 2
Second payment on account	31 July 201 2

Return is 1 DAY late

A fixed penalty of £100. The applies even if you have no tax to pay or have paid the tax you owe. back to top

Return is 3 MONTHS late

A penalty of £10 for each following day - up to a 90 day maximum of £900. This is on top of the fixed penalty above. back to top

Return is 6 MONTHS late

If the tax return continues to remain unfiled a £300 or 5% of the tax due penalty will apply - whichever is higher. So again even if you owe no tax the penalty will be at least £300. Again this is in addition to the previous penalties charged. back to top

Return is 12 MONTHS late

If the tax return continues to remain unfiled after 1 year then a further £300 or 5% of the tax due penalty will apply - whichever is greater. Again this in addition to any previous penalties charged. back to top

In total therefore a tax return with no tax showing as due will have incurred a penalty of £1,600 if it is filed more than a year after the due date.

There are situations were these penalties can be mitigated due to reasonable cause - specific rules apply in this regard.

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