New Tax Return Penalties and NMW Rates
HMRC New Tax Return Penalties
The new tax return penalties come into effect this autumn. The changes will affect self assesment returns for 2010/2011, and all future years.
The penalties for any returns filed late are now:
- An initial £100 fixed penalty, which will now apply even if there is no tax to pay for the year, or if the tax due for the year has already been paid on time;
- After 3 months, additional daily penalties of £10 per day, up to a maximum of £900;
- After 6 months, a further penalty of 5 per cent of the tax due or £300, whichever is greater; and
- After 12 months, another 5 per cent or £300 charge, whichever is greater. In serious cases, the penalty after 12 months can be up to 100 per cent of the tax due.
New penalties for paying late are 5 per cent of the tax unpaid at:
30 days;
6 months; and
12 months.
Interest will also be charged on top of these penalties.
The tax return deadlines remain unchanged - 31 October for paper and 31 January for online returns. The deadline for paying any tax due also remains the same at 31 January.
National Minimum Wage
The new National Minimum Wage rates that come into force on 1st October are:
- aged 21 and over - £6.08
- aged 18 to 21 - £4.98
- aged 16 to 17 - £3.68
- apprentices - £2.60
If you have any queries regarding the above or any other matter, please do not hesitate to
contact us.
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