Penalties for late returns and late payment of tax
Late payment penalties
Penalties of 5% of the tax unpaid are charged thirty days and six months after the due date for tax payment (31 Jan) on 1/2 March and 31 July.
The default surcharge penalty system also applies to late payment of VAT liabilities, even if the return is filed on time.
PAYE, NIC and CIS tax
There is a penalty regime under which late payment of PAYE, NIC and related liabilities during the tax year will attract a penalty. The first late payment in the tax year is not liable to penalties but subsequent late payments attract a penalty base on the total number of late payments in the tax year.
Tax is due by 19th of the following month or 22nd if paid electronically. Small employers may use the quarterly payment scheme. Late payment penalty notices are sent out after the end of the tax year, so you may not be aware that substantial penalties are accruing.
Limited company accounts – late filing penalties
Penalties for late filing are as follows:
Giving, credits and benefits