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HMRC & Companies House late filing & payment penalties for 2015/16

If you’re a freelancer, contractor or small business working as a sole trader or limited company in the UK, it’s vital you stay on top of the deadlines for your tax filings, as well as the various tax rates and thresholds.


If you miss filing or payment deadlines imposed by HMRC or Companies House you will face various on-the-spot penalties or tiered fines based on the degree of lateness.


HMRC


 


Self Assessment


HMRC issue two types of Self Assessment penalties – those for late filing, and for late payment of owed tax. Both increase over time.


Late filing





















Missed deadline£100 penalty
3 months late£10 daily penalty for up to 90 days
6 months late5% of tax due or £300 (whichever is greater)
12 months late5% of tax due or £300 (whichever is greater)


Additional penalties may be applied if HMRC believe the taxpayer is intentionally withholding information or trying to evade tax.


Late payment

















30 days late5% of tax due
6 months late5% of tax due at that date
12 months5% of tax due at that date


VAT


For VAT registered businesses HMRC issue increasingly strict penalties if you miss multiple returns.








































Missed payments within 12 monthsPenalty if annual turnover is less than £150,000Penalty if annual turnover is £150,000 or more
1NoneNone
2None2% (None if less than £400)
32% (None if less than £400)5% (None if less than £400)
45% (None if less than £400)10% or £30 (whichever is greater)
510% or £30 (whichever is greater)15% or £30 (whichever is greater)
6 or more15% or £30 (whichever is greater)15% or £30 (whichever is greater)


Corporation Tax


As with Self Assessments, Corporation Tax penalties are issued both for late filing and late payment, and increase over time.


Late filing





















1 day late£100 penalty
3 months late£100 penalty
6 months10% penalty added to estimated tax bill
12 months10% penalty added to estimated tax bill


Late payment









Any overdue payment3% penalty


Construction Industry Scheme


If you are a contractor working under the CIS, you will face additional penalties if you miss the date for your CIS return.





















1 day late£100 penalty
2 months late£200 penalty
6 months late£300 penalty or 5% of CIS deductions (whichever is greater)
12 months late£300 penalty or 5% of CIS deductions (whichever is greater)


Companies House


Statutory Accounts





























Limited CompanyPublic Limited Company
Up to 1 month£150£750
Up to 3 months£375£1,500
Up to 6 months£750£3,000
More than 6 months£1,500£7,500

 


Penalties double if returns are late in two successive financial years.


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