For anyone who has to complete a personal income tax return for the year 2010-2011 you’ve got exactly a week left to submit it or you’ll be facing a fine of at least £100.
Up until this year HMRC have always imposed a fixed penalty of £100 for filing your tax return late, but this was limited to the amount of tax and National Insurance you were due to pay. If you didn’t owe anything then there was no fine to pay.
This has changed as of the 2010-2011 tax year, if you fail to submit your return by the 31st then the £100 fine kicks in and it then increases by an additional £10 for every day you’re late up to a total of £900. If you’re more than six months late you’ll be fined another £300 or 5% of your tax bill whichever is greater and the same again for being more than 12 months late.
It’s important to realise that even if you owe no tax (or even if HMRC owe you a tax refund) you’ll still be fined if you submit your return late. It really is worth getting your return in on time and if you’re new to self employment or selling on eBay then it’s not too late – find a good accountant and they’ll be able to help you submit your return on time and probably save you money off your tax bill as well.