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Penalties for late returns

Income tax self assessment Note 2008/09 2007/08
Standard penalty - up to 6 months late 1 £100 £100
Standard penalty - up to 12 months late 1 £200 £200
Return over 12 months late 100% of tax due 100% of tax due
Daily penalty - confirmed by Commissioners £60 £60
Corporation Tax self assessment
First and second late returns - up to 3 months late £100 £100
Third consecutive late return - up to 3 months late £500 £500
First and second late returns - 3 - 6 months late £200 £200
Third consecutive late return - 3 - 6 months late £1,000 £1,000
Returns more than 6 months late 10% of tax outstanding 10% of tax outstanding
Returns more than 12 months late 20% of tax outstanding 20% of tax outstanding
PAYE
Year end return (form P35) and related forms £100 per 50 employees per month (or part) £100 per 50 employees per month (or part)
Form P11D(b) where due £100 per 50 employees per month (or part) £100 per 50 employees per month (or part)
Forms P11D £300 per form £300 per form
CIS
Monthly return - CIS 300 £100 per 50 subcontractors per month £100 per 50 subcontractors per month
VAT : default surcharge periods
First return in surcharge period 3 2% 2%
Second return in surcharge period 3 5% 5%
Third return in surcharge period 10% 10%
Fourth and subsequent return in surcharge period 15% 15%

Notes

  1. The fixed penalties for late self assessment returns cannot exceed the tax outstanding on the due date for the return. If all of the tax has been paid the fixed penalty is zero. This does not apply to partnership and trust returns.
  2. VAT default surcharge also applies when the VAT return has been submitted but the VAT remains unpaid. The penalty is calculated at the rate shown applied to the VAT outstanding. Late repayment returns still register as a default, but no penalty is due.
  3. Penalties at 2% and 5% are not levied if the amount of the penalty does not exceed £400, but the default still registers and increases the potential penalty for the next default.