Late self assessors warned on penalties

The ICAEW has warned
, who have not yet paid all the tax due for the 2005-2006 tax year,
that they will incur cumulative penalties the longer payment is delayed.

From the 28 February, HM Revenue &
has started imposing a 5% surcharge on all unpaid tax from 2005/06,
28 days after the final deadline of 31 January 2007.

In addition, interest will be payable on the surcharge if it is not paid
within 30 days of the date of the notice issued by HMRC.

Anita Monteith, technical manager from the ICAEW Tax Faculty, said:
‘Taxpayers need to be aware about the amount of interest, surcharges and
penalties that can be imposed by HMRC. Although it is easy to put off paying tax
which is owed, the costs can very quickly add up.’

There is an automatic charge of £100 on any late return and this will be
doubled on 31 July if the self-assessment form has still not been submitted to
the taxman. For continuing failure to submit the tax return, a daily penalty of
£60 can also be levied.
Further reading:

One step beyond

Online self-assessment tax filing up 40% on last year

Strike to hit 31 January self-assessment filing

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