Beware! Contractors are now subject to new penalty rates…and
they will hurt!
Following on from the budget, and in line with the government's
rigorous system of clawing money back to help save the country from
its huge financial deficit, Contractors have been awarded new
penalty rates.
If you're late filing your tax return after 6th April
2011, the award will be that of a shock and not a nice one!
The new penalties are painful. HMRC can now charge a whopping
£100 fine immediately following the due date of your tax
return. They can then charge an additional £10 per day for
the next 3 months …up to 90 days! This could leave you with a
potentially damaging penalty. But wait, there's more… if
after 6 months you still haven't filed your return, you could be
charged 5% of the tax due or £300 (whichever is greater).
And, although it may seem extreme, for those who are late filing
their return by 12 months may be subject to a penalty of up to 70%
of the tax owed.
So, please be warned - get your returns filed on time! If
you need any advice or assistance with your tax return please
contact Nasa today on 0117 904 7755 or at info@nasaconsulting.com.