Taxman warns local businesses of penalties

Every year, around 238,000 people file a Self Assessment return in Northern Ireland.

The new penalties for late Self Assessment returns are: an initial £100 fixed penalty, which will now apply even if there is no tax to pay, or if the tax due is 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% of the tax due.

New penalties for paying late are 5 per cent of the tax unpaid at: 30 days; six 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.

The changes will affect Self Assessment returns for 2010/11, and all future financial years.

Further information on the new penalties is available from the HMRC website at www.hmrc.gov.uk/sa/deadlines-penalties.htm.

For help and advice on completing a return, visit www.hmrc.gov.uk/sa or call the Self Assessment helpline on 0845 9000 444.