The new penalty regime for late filing and late payment of Income Tax through Self Assessment was introduced in April 2011. The penalties for those who file & pay late will significantly increase:
•£100 if the return is one day late even if no tax is due or has been paid;
•£10 per day up to a maximum of £900 if the return is 3 months late;
•The greater of 5% of the tax due or £300 if the return is 6 months late;
•The greater of 5% of the tax due or £300 if the return is 12 months late;
•In very serious cases 100% of the tax due.
For the tax year 2010/11 (ending on 5 April 2011) you must file your tax return by 31 January 2012. You’ll usually have to make ‘payments on account’ of the current year’s tax. You’ll have to make two payments, one by 31 January 2011 and the other by 31 July 2011. Each payment is half of the tax due for the previous year.