News and Commentary

Email scams - emails apparently from HMRC

Not so much news; more of a reminder...

There are some quite convincing emails going around that appear to be from HMRC offering tax refunds. There are plenty of clues in the emails to indicate they are fraudulent but there is only one simple rule to remember: HMRC NEVER SEND EMAILS TO INDIVIDUALS.

So if you get such an email, don't click on anything except the delete button and definitiely do NOT reply with any bank or other personal details.

Self Assessment - new penalty regime for late submission and late payments

The self assessment penalty regime has been made considerably harsher from 2010/2011 onwards:

£100 for late submission after 31st January regardless of the tax due (including nil or a repayment) and/or whether or not it has already been paid. This is a significant change, as the penalty had previously been reduced where the tax due is under £100 or cancelled if no tax is due.

£10 per day if submitted after 30th April until finally submitted up to a maximum of £900 (which would take it to the end of July).

The greater of £300 or 5% of the tax due if submitted after 31st July.

Further, the greater of £300 or 5% of the tax due if submitted after the following 31st January

They also ominously talk about up to 100% of the tax due if a year late ‘in particularly serious cases’.

The above all relate to the filing of the Return itself – nothing to do with the tax payable.

The late payment penalties for the tax payments are as before; 5% of the outstanding as at 28th February, 31st July and 31st of the following January.

Interest accrues on day one of all late payments regardless of any of the above.